Handling Taxes in Lease Accounting Module
How to reconcile payables clearing account when tax classification used in the payment schedules?
Lease defined with a payment schedule of $2400/month. In the payment schedule assigned a tax classification. Approved the lease payment. Lease accounting generated a Journal entry as below:
Lease Liability Account Dr 2400
Payables Clearing Account Cr 2400
Interfaced the payment to AP. Taxes calculated in AP and tax amount as $198. Accounting generated as below:
Payables Clearing Account Dr 2400
Payables Clearing Account Dr (Tax Amount) 198
AP Liability Account Cr 2598
Due to the above accounting entries, payables clearing account is not getting reconciled for the tax amount. Has anyone handled this scenario? If yes, how was this handled?