DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Tax Summary Vs Tax Audit Reports


#1

Besides a breakdown in categories in the Tax Audit report how do the Tax audit and Tax summary reports differ in their calculation? I ask because I’m getting two different numbers for the incomes and expenses. For example my tax summary shows :

whereas my tax audit report shows:

The tax audit report matches with my general ledger but I can not get the tax summary to match with anything. Any help will be appreciated


#2

Tax audit is basically a trial balance segmented by tax code. It’s only useful to make sure all transactions posted to certain accounts have correct tax code. For example, all your sales should be subject to GST 10% or GST Free so tax audit will easily show you that you don’t have any transactions posted to sales account without specifying tax code.

Tax summary will definitely match with tax audit but you need to realize that amounts posted to income accounts as per Tax Audit will be tax-exclusive amounts (as tax will be posted to liability account separately). The total under GST 10% column as per tax audit should always equal to Net Sales minus Net Purchases under tax summary for GST 10% line.


#3

Thanks lubos.
I found out I may have to tweak how I’m recording things for it make more sense. One of my expenses, which mostly get recouped, has amounts in both the debit and credit columns of the general ledger. This credit was being included in the tax summary figure whereas in the profit/loss, tax audit and nearly every other report it isn’t. In those only the difference is recorded in the expenses and ignored as income.