Hi,
In addition to Accounting Books, we would also like to maintain Statutory Books in SAP B1.
Details:
The Accounting Book is finalized at Year End. Year End Adjustments (JEs) are made.
Susbequent to this we need to finalize account books for Tax / Statutory purposes. This entails passing a few more Adjustment Journal Entries.
Some of the reasons - The stock accounting and asset accounting standards for Tax purpose is different from that required by the Accounting Board.
Year 1 P&L Report
P&L (Accounting Book) - This should not include the Tax related Adjustment Entries made in Year 1.
P&L (Tax Book) - This should include the Tax related Adjustment Entries made in Year 1.
Year 2 (subsequent year) - Transfer of Balances -
Balance Sheet (Accounting Book) - the Closing Asset and Liability Balances of Account Book of Year 1 should continue as the Opening Balance for Year 2.
Balance Sheet (Tax Book) - the Closing Asset and Liability Balance of TAX Book of Year 1 should serve as the Opening Balance for Year 2. This includes the TAx Adjustment Entries.
As can be seen - in Year 2, the value of Retained Earning (Profit of Year1) for Accounting Balance Sheet and Tax BS will be different.
Has someone faced this situation?
PLEASE CONFIRM.
I think this can be handled by using Period 13 Adjustment Entries !
We might also need to keep a few GL accounts specifically for Tax Books.
And then we can check the "Ignore Adjustments" checkbox in the Balance Sheet and Profit and Loss reports to view the Accounting Books.
The "Ignore Adjustments" checkbox can be unchecked to view the Tax Books.
Regards
Manish
Edited by: Manish Chaturvedi on Mar 24, 2009 2:33 PM
Edited by: Manish Chaturvedi on Mar 24, 2009 2:34 PM