Create Tax Adjustments

This page allows you to make adjustments in tax amounts, after the authorization of the invoice.Adjustments can be done for Supplier Invoicing, Supplier Credit Note and Sundry Payment for TDS and for Customer Invoicing, Customer Debit Note and Sundry receipts for TCS.On authorization of the adjustment, system generated account based supplier/ Customer debit/credit note gets created in ‘Authorized’ status and they will not be available for reversal in the Supplier/ Customer debit/credit note component.

Select the “Create Tax Adjustments” link under the “Tax Transactions” business component.

The “Create Tax Adjustments” page appears.

Enter the following fields in the “Adjustment Information” group box:

Tax Type

Use the drop-down list box to select the required tax type. Mandatory. The system loads the list with all the tax types applicable for adjustments and displays the value "TDS" by default on launch of the page. If TDS is not loaded in the combo, the first loaded value is defaulted.

Tax type is the type of tax, for example TCS and TDS. On change of Tax type, the system loads the Tax region, Tax Class available for the Tax Type.

Tax Region

Use the drop-down list box to select the required tax region. Mandatory. The system loads the combo with the Tax regions available for the defaulted Tax Type. The first value loaded in the combo is displayed by default on launch of the page.

Tax region is the place at which the declaration of tax is made.

On change of tax region, the system loads the Revised tax code list with the tax codes for the tax type.

The system displays in the following fields in the “Adjustment Information” group box:

Status

The status of the adjustment.

Enter the following fields in “Adjustment Information” group box:

Tax Adjustment No.

The required tax Adjustment No (Alphanumeric, 18). Mandatory. The number allotted to the adjustment entry.

Select the following fields from the “Adjustment Information” group box:

Numbering Type

Use the drop-down list box to select the required numbering type, Tax adj, or Manual. If the numbering type is manual and if Tax adjustment number has been entered the system checks for uniqueness for the transaction type.

Adjustment type

Use the drop-down list box to select the required adjustment type. If the Tax Type is selected as TDS, the following values: Total Reversal, Excess Deduction, Short Deduction, Consolidation and Edit Taxable Amount are available for selection. On launch of the page the system displays value, 'Short Deduction' by default. If the Tax type is TCS, the values "Short Collection", "Excess Collection" and "Total reversal" are available for selection. The first value loaded in the combo will be displayed.

If the adjustment type is ‘Total Reversal’ no tax will be calculated. If the adjustment type is not 'Reversal' and revised tax amount is not given, tax will be calculated for each row in the multi line Use the following logic. Revised tax amount = Revised Taxable Amount * Revised tax rate.
If the adjustment type is 'Short Deduction/ Short Collection' the revised tax amount for each line in the multiline must be greater than the tax amount
If the adjustment type is 'Excess Deduction/ Excess Collection', the revised tax amount for each line in the multi line must be less than the tax amount, but greater than zero.
If the adjustment type is 'Short Deduction/ Short Collection' the adjusted tax amount will be the difference between the Total revised tax amount and total tax amount. Adjusted tax amount = Total Revised Tax Amount - Total tax amount.
If the adjustment type is 'Excess Deduction/ Excess Collection' or 'Total Reversal' the adjusted tax amount will be difference between the Total tax amount and total revised tax amount. Adjusted tax amount = Total Tax Amount - Total Revised tax amount.
If the Adjustment Type is "Edit Taxable Amount", the documents for which the TDS threshold limit has not been crossed will get fetched to edit only the taxable amount. In this scenario, the Original and Revised Tax Amount will be zero.
If the adjustment type is "Consolidation", the documents for which the tax was not computed will get fetched to compute TDS.

Note: The status of the document will be “Blank” when the page is launched. When the adjustment is created, status will be set to “Fresh”.

Enter the following fields in “Adjustment Information” group box:

Adjustment Date

The adjustment date (Date format) Mandatory. Adjustment date should be greater than or equal to the latest transaction date.

Finance Book

Use the drop-down list box to select the required finance book Mandatory. The finance book in which the transaction is accounted. The finance books available for the company will be filled in the list and the first, loaded finance book will be displayed.

On Change of finance book the system clears the information in all the fields except tax type, tax region, numbering type, and finance book, the rest displaying their default values.

Tax Rule Engine Validation

Indicate whether the validation with respect to tax code based on threshold limit is applicable or not.

Note: This control would be visible only when the adjustment type is selected as "Consolidation".

Enter the following fields in the “Tax Details” group box:

Tax Class

Use the drop-down list box to select the required tax Class. Mandatory.

Tax class is a code that identifies the sub transactions type for reporting purposes, specified by the tax authorities. The tax class list box displays the first loaded value on launch of the page.

Revised Tax Class

Use the drop-down list box to select the required tax Class. Mandatory.

Note: Revised Tax class control would be visible and can be selected only when the Tax Class is “Not Taxable”.

Enter the following fields in the “Tax Details” group box:

Party Type

Use the drop-down list box to select the required party type Mandatory. On launch of the page the system displays value, 'Supplier'.

Party Code

The party code (Alphanumeric, 40). Mandatory.

If the party type is Supplier then the entered party code will be a supplier code; if the party type is Customer then the entered party code will be customer code.

Help facility available.

The system displays the following fields in the “Tax Details” group box:

Party Name	The name of the party.
Assessee Type	The type of tax assessee.

Enter the following fields in the “Search Criteria” group box:

Transaction Type	Use the drop-down list box to select the required transaction type. The list loads with transaction types applicable for adjustment for the tax type. The system displays "All" by default on launch of the page.
Transaction Date From	The date from which the search is to start (Date format).
To	The end date of your range of search (Date format).
Transaction Currency	Use the drop-down list box to select the required transaction currency Mandatory. The list is loaded with all the currencies applicable for the tax type and the transaction date and the system displays the first loaded value as default.
Transaction No. From	The transaction number from which the search is to start (Alphanumeric, 18). Enter the transaction number.
To	The end number of your range of search (Alphanumeric, 18).

Click the “Get details” pushbutton to launch the search.

The “Transaction Details” multiline displays the data relating to the entered search criteria.

Enter the following fields in the “Transaction Details” multiline for the required adjustment:

Transaction Type	The type of transaction (Alphanumeric, 40).
Transaction No	The serial number assigned to the transaction (Alphanumeric, 18). Mandatory
Transaction Date	The date of the transaction (Date Format).
Transaction Amount	The amount of the transaction (Integer).
Transaction Currency	The currency used for the transaction (Alphanumeric, 5).

The system displays the following field:

Exchange Rate

The rate of exchange between the base currency and the transaction currency. (Integer).

Enter the following fields in the “Transaction Details” multiline for the required adjustment:

Taxable Amount	The amount required to be taxed (Integer).
Code Type	The type of the code used in Transaction (Alphanumeric, 25).
Tax Code	The tax code (Alphanumeric, 10).
Tax Rate	The rate of tax (Integer).
Tax Amount	The amount of tax calculated (Integer).
Revised Taxable Amount	Revised taxable amount is the modified amount that is required to be taxed during adjustments and must not exceed the taxable amount for the transaction type, transaction no, tax type (Integer). Mandatory. Revised taxable amount should be positive amount for the transaction type, transaction no, tax type where adjustment type is not Total Reversal.
Revised Tax Code	Use the drop-down list box to select the required tax code. The list is loaded with the tax codes for the tax type tax region and the system displays the first loaded value. On change of revised tax code, the system gets the tax rate and displays the same for the tax code, tax type, tax region, and adjustment date. On Change of Tax code the system clears the revised tax amount field in the multiline (for the row for which tax code is changed).
Revised Tax Rate	On change of the revised tax code the rate is displayed (Integer).
Revised Tax Amount	The tax as revised (Integer). Mandatory.

Check the box in the “Select” column of the multiline to select the required tax adjustment record.
Click the “Compute Adjustments” pushbutton to compute the adjustments made.

The system displays the following fields in the “Reference Document Details” group box:

Ref. Doc. Type	Ref Doc Type is either Supplier Account Based Debit Note or Supplier Account Based Credit Note, if tax type is TDS and either Customer Account Based Debit Note or Customer Account Based Credit Note, if tax type is TCS. If the ref doc type is Supplier Account based debit note, the adjustment entry passed would be debit Supplier Control Account and credit TDS Payable A/c Mandatory. If the ref doc type is Supplier Account based credit note, the adjustment entry passed would be credit Supplier Control Account and debit TDS Payable A/c. If the ref doc type is Customer Account based debit note, the adjustment entry passed would be debit Customer Control Account and credit TCS Receivable Account If the ref doc type is Customer Account based credit note, the adjustment entry passed would be credit Supplier Control Account and debit TCS Receivable Account. The system displays value only on authorization of the tax adjustment.
Ref. Doc. No.	The reference number of the document. The system displays value only on authorization of the tax adjustment.
Ref Doc. Amount	The amount of the document. The system displays value only on authorization of the tax adjustment.
Total Taxable Amount	The total taxable amount will be the sum of the taxable amounts in the multiline.
Total Revised Taxable Amount	The total revised taxable amount will be the sum of the revised taxable amounts in the multi line.
Total Tax Amount	The total tax amount will be the sum of the tax amounts in the multi line.
Total Revised Tax Amount	The total revised tax amount will be the sum of the revised tax amounts in the multi line.
Adjusted Tax Amount	Adjusted tax amount is the amount for which adjustment is made and the same should be greater than zero. Else throw error message.

Click the “Create” pushbutton, if you only require to create the adjustment but not authorize it.
Click the “Create And Authorize” pushbutton if you require to create and to simultaneously authorize. Update the tax adjustment document status to 'Authorized'

The system displays the following fields:

Created By	The login ID of the user who created the tax adjustment.
Created Date	The date on which the tax adjustment was created.

To proceed, carry out the following

Select the "Authorize Tax Adjustments" link at the bottom of the page to authorize the tax adjustments.
Select the "View Tax Adjustments" link at the bottom of the page to view the tax adjustments.
Select the “Customer Debit / Credit Note” link at the bottom of the page to view customer account based note.
Select the "Supplier Debit / Credit Note” link at the bottom of the page to view Supplier account based note