"Close" of "Freeze" transactions for a certain Tax Period

#1

Is it possible to Freeze certain periods for Tax Reports? If you then view the Tax Report previously generated, the report will correspond to the actual tax return submitted for that period. If new transactions are processed, it will automatically show under the “Open” Tax period, which will be the next VAT period that still has to be submitted.

Currently if transactions are processed, it amends the tax reports previously generated (If the transaction is within that period). The problem with this is that the report no longer corresponds to the return submitted. If we receive an audit from the authorities, it becomes a huge burden to explain to them which transactions were actually submitted on a specific return.

#2

Do you know about setting a Lock Date? See the Guide at http://guides.manager.io/businesses/settings/lock-date.

Can you describe a use case in which you would enter a transaction for a date that is already past? It seems the only reason would be if you mistakenly forgot to enter a transaction. In that situation, though, an amended tax return would seem to be required, also (assuming your jurisdiction permits those).

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#3

The tax reports are based on business activity within date parameters (Jan 1 to Mar31), so if you post a transaction to prior (reported) period, then that transaction wont be picked up.

If you have a “late” transaction then you have several options:

  1. if the amount is insignificant or not material, just post within the current tax reporting period.
  2. if the amount is significant or needs to be allocated/reported into a prior period then post the transaction into a BS clearing account in the current period so the tax component is captured and then Journalise the item from the clearing account using the actual date.
  3. If your tax report has a prior period adjustments field, then enter the amending amount between the lodged tax report and the reprinted report there and all amounts will balance out ok.

If you do (3), then create a reconciliation starting with the lodged tax report and list the amending transactions to reach the adjusted tax report. Attach this reconciliation to the tax report with the prior period adjustments field completed and this should satisfy an authorities audit as you have a proper paper trail.

To help capture such transaction you can use the “Lock Date” feature mentioned above, as it can be switched on/off as required.

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