Learn about Redwood and be one of the first to join the conversation

Visit Redwood Community
AP Invoice - Recoverable Tax Accounting — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

AP Invoice - Recoverable Tax Accounting

Received Response
1
Views
1
Comments

Summary:


Content (required):

Scenario

One single PRIMARY LEDGER with MULTIPLE LEGAL ENTITIES(Companies)

AP Invoice is created for 110 AUD where:

LIABILITY : CO1 - ZZ-21101

ITEM EXPENSE : CO2 -CC1-54545

Tax rate(10%) used is having 100% recovery rate


When the invoice is validated and accounted , an additional line is generated for TAX RECOVERABLE class.

LIABILITY : CO1-ZZ-21101 110 AUD CR

ITEM EXPENSE : CO2-CC1-54545 100 AUD DR

TAX RECOVRABLE LINE : ****-ZZ-20600 10 AUD DR



Question is : As per accounting standards, what should be the **** above on TAX RECOV LINE - should it be the liability BSV i.e. CO1

or ITEM EXPENSE BSV i.e. CO2 ?

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!