Self assessed tax accounting
Posted: 07 November 2008 12:47 AM
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Total Posts:  1
Joined  2008-11-07

1. When invoice is 3-way matched where accruals are done at receipt, the Use Tax amount is debited to the accrual account.
2. But in reality it should be debited to the charge account and credited to the specific Tax account defined in the EBTax configuration.

Is this (#1) a standard behavior?

Steps involved:
1. Create invoice, match it to the receipt (accruals are performed ‘at receipt’)
2. Click calculate tax
3. Override Use Tax (add amount and check self assessed checkbox) on the invoice
4. Validate invoice
5. Create Accounting for invoice
6. The ‘create accounting’ report reflects that the item line and the self assessed tax line are debited to the accrual account. Item line is then credited to a liability account and the self assessed tax line is credited to the specific Tax account defined in the EBTax configuration.

Question is why does the self assessed tax line is debited to the accrual account and not to the charge account?

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