Re: Best way of adding corporate taxes?

[Steve D. <sd...@sw...>]

Hi Jaco.

Jaco van Staden wrote:

> Hi
>
> What is the best way of inserting corporate taxes to be paid. And taxes
> already paid.
>
> I tried a ledger entry, but that does not work.

It should.  Book the following when you calculate your tax liability
(hypothetical amounts):

debit: 5680 - Income tax expense 10,000
     credit: 2160 - Corporate taxes payable 10,000

when you pay it, book:

debit: 2160 - Corporate taxes payable 10,000
     credit: 1061 - Checking Account 1 10,000 (or whatever cash account
you use to pay them)

As with any accrual account, you should have a good feel for what's left
in the ending balance, because you'll rarely get to zero it out due to
timing differences of accruals vs. payments.

>
>
> Furthermore, I cannot determine from the online demo how it was done.

Sql-ledger has the option to enter an opening balance when you set up an
account.  The balance in Corporate Taxes Payable was entered as an opening
balance, so no detail is available in Sql-ledger.  It's also entered as a
negative amount which wouldn't be appropriate for most payables accounts.
In the real world you presumably would have support for that opening
balance from your previous system.

I hope that clarifies things.
Steve

>
>
> Regards
>
> --
> Jaco van Staden
> Cyber Seal Information Systems Development
> Tel: +27 12 998 5674, Fax: +27 12 998 0249,
> Cell: +27 82 927 5513, http://www.cyberseal.co.za