Accounting for consumption Tax when lease payments are interfaced to Payables
Summary:
Facing an issue in accounting for consumption tax when lease payments are interfaced to Payables
Content (please ensure you mask any confidential information):
When lease payments with consumption tax are interfaced to payables I get the line for lease liability, a debit to upfront tax reserve for consumption tax and a line for non recoverable tax .
However when accounting is done for the invoice then we are having intracompany lines instead of the correct tax liability accounts being considered in the accounting. Doesn't payables support the recoverable tax accounting when interfaced from lease accounting. How to take care of this leg of accounting?
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