Gross Income Accounting Examples

QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Implementing Gross Income Accounting > Gross Income Accounting Examples

Cross-Company Example

In this example, the header site belongs to entity 1000 and the line site belongs to entity 2000. Gross income accounting is enabled in both entities and gross income accounting mapping records exist in both entities. Since the header and line site entities are different, a gross income accounting cross-company posting is created in entity 2000 for the sales line when the invoice is posted.

Entity 1000, Standard Posting


Account	Account Description	Dr	Cr
1200	Customer Control	235.00
2400	Tax Payable		35.00
1203	Cross-Company - AR		200.00

The customer invoice record is created in the header site entity. The tax payable transaction is also posted here.

Entity 2000, Standard Posting


Account	Account Description	Dr	Cr
1203	Cross-Company - AR	200.00
3000	Sales		200.00

The sales posting line is in the line site entity.

Entity 2000, Gross Income Accounting Posting


Account	Account Description	Dr	Cr
5000	Tax Expense	35.00
3000	Sales		35.00

The gross income accounting posting is to the line site entity.

Tax by Line Example

A sales transaction is subject to three tax rates: 17.5%, 5%, and 0%. Tax-By-Line is enabled for all three tax rates.


Line Number	GL Account	Line Amount	Tax Rate	Tax Amount/Detail
1	3000	100.00	17.5	17.50
2	3010	200.00	17.5	35.00
3	3000	300.00	5.0	15.00
4	3000	400.00	5.0	20.00
5	3010	500.00	0.0	0.00
6	3010	600.00	0.0	0.00
Total		2100.00		87.50

When the transaction is posted, Invoice Post and Print (7.13.4) generates the following transactions:


Account	Dr	Cr
Accounts Receivable	2187.50
Tax Account		87.50
Sales Account 3000		800.00
Sales Account 3010		1300.00

The corresponding gross income accounting posting is as follows:


Account	Dr	Cr
Tax Expense Account	87.50
Sales Account 3000		52.50 (17.50 + 15.00 + 20.00)
Sales Account 3010		35.00 (35.00 + 0.00 + 0.00)