Tax Summary Vs Tax Audit Reports

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

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.

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.

@lubos Why Mine is not balanced? Also, I made a journal entry about tax but it’s not showing in my Tax Summary. Please help me. Thanks

This is my Tax Summary

This is my Tax Audit

And this is the Journal Entry that is not reflecting.

It is not possible to answer your question with the information you have furnished. You would need to show the Edit screens for all transactions involved, something that is obviously impossible. But the following observations are possible:

  • The two reports show different things. They are not intended to “balance,” necessarily, whatever you mean by that. Read the earlier posts in this thread.
  • If you think the journal entry is not properly included, show its Edit screen. It is not possible to tell anything about taxes from the View screen, as all amounts in that screen are tax-inclusive.

Based upon the information you have furnished, your Journal Entry is incorrectly created.
The first line “Prepaid Rent” should be Debit with 70,483.00 and then with the “Tax” selected as 5%. That is, you enter the amounts as tax inclusive. In the following example I have used 10% tax.
0000000 Bug 1a and 0000000 Bug 2

The only transactions that get directly posted to the “Tax Payable” account are payments to or refunds from the tax authority.