Sales Tax Adjustment Report

Accounts Receivable and Billing

Month End

About

The Sales Tax Adjustment Report is used to report transactions that change the amount of sales tax due to tax localities. These transactions are Cash Posting:

• Discounts when the option Discounts Include Tax is specified in Tax Rate Maintenance
• Allowances when either the option Percentage or Tax Adjustment is selected in Allowance Maintenance.

Changes to Sales Tax Adjustment Report

In version 2.3 the process for reporting sales tax adjustments has signigicantly changed.

In prior versions, the adjustments were calculated by comparing cash posting history to invoice history to derive tax adjustments. This process required the program to make certain assumptions, such as to assume if discount was on an invoice with tax, that the discount would apply to taxable items.

Starting with version 2.3, Keystone keeps all tax related activity in the Sales Tax Transaction table. This allows for a finer level of detail.

NOTE: For customers moving from versions before 2.3 to 2.3, it may be necessary to run Generate A/R Cash Tax Transactions from the System Maintenance/Utilities menu (Admin login required).