IN THIS ARTICLE:
Learn about the Tax Reconciliation Report (FIN-16), its filter options, and how to generate it.
What is the Tax Reconciliation Report?
The Tax Reconciliation Report is used to provide totals for sales tax reporting. It gives a summary by program of financial transactions within a specific period of time that can be used to reconcile charges and payments; in particular by using the Category List Report (FIN-6) and Program Deposit Split Report (FIN-4). You can basically think of the Tax Reconciliation Report as a summary of both what was billed out to customers and what was collected, with the ability to distinguish between the amount billed for goods/services and the taxes assessed.
The report can be generated with two to three distinct sections of information, which are:
- Charge Dates - included by default, this section of the report references any charges created within the date range used in the report filters (paid or unpaid).
- Adjustments on Charges Prior To - included by default, this section of the report accounts for charges which had payments collected or applied to them during this date range, but the charges themselves were created prior to the date range of the report.
- Transaction Details - only included if the display option "Charge and Adjustment Details" is enabled, this section lists specific actions related to charges which account for the totals in the first two sections, including the charge amount, tax amount, collected charge amount, and collected tax amount. In other words, this is a way to include details to help explain the first two sections.
In the screenshots below, we have highlighted the different sets of information to compare to the other reports. What is shown in the red box is what you charged out, and the green box is what your customers paid in.
In summary, the report delivers three important sets of details - what was charged, what was paid for, and what remains unpaid for each program and overall.
The Category List Report only reports what was freshly created/charged between your chosen dates, so you can reconcile the red outlined columns of the Tax Reconciliation Report with the Category List Report for the same date(s) and they should match. The "Charge Dates" section of the Tax Reconciliation Report will be the only relevant section of data when comparing the two reports because it reflects newly created charges. But when comparing totals, be sure to include any charges that are indicated as deleted in Category List Report which were deleted after the date range of the report itself, as those charges and any related income will be included on the Tax Reconciliation Report totals.
The Program Deposit Split Report only reports what was applied in payments between your chosen dates, so you can reconcile the reports using the green outlined columns of the Tax Reconciliation Report image above. Adding the “Collected Charges” and “Collected Taxes” on the Tax Reconciliation Report should give you the same total as the "Total Payments Received" on the Program Deposit Split Report with any unapplied amounts subtracted or added back in, as necessary. While the image with the red and green outlines above only includes one section of the report, be sure to account for the collected columns from both the "Charge Dates" section as well as the "Adjustments" section when comparing this report to the Program Deposit Split Report.
For example, positive Unapplied entries on the Program Deposit Split Report (such as UNAPPLIED PAYMENTS and UNAPPLIED VOIDED REFUNDS) will need to be subtracted from the "Total Payments Received." Negative entries (such as UNAPPLIED VOIDED PAYMENTS, UNAPPLIED DELETED PAYMENTS and UNAPPLIED REFUNDS) will need to be added back to it (since they weren't actually collected, they were either given back to customers or voided so the payment never actually processed). Be sure to account for any negative unapplied payment totals from the "Adjustments" section of the Program Deposit Split Report, as this means they were moved from an "unapplied" state to an "applied" state within the date range of the report. The final total should match the total of the "Collected Charges" and "Collected Taxed" on the Tax Reconciliation Report.
- Click here for more information about comparing the Tax Reconciliation Report and the Program Deposit Split Report.
The Tax Reconciliation Report is available in either HTML, PDF, XLS or CSV format.
- START DATE/END DATE: allows you to specify a date range for the report. This system will only report charges created or payments applied within this date range.
- LOCATIONS: the system will only include charges/payments associated with the selected Location(s) in the results. (In order to reconcile the report, these should match the Location(s) chosen for your Category List Report and Program Deposit Split Report.)
- DISPLAY OPTIONS:
- Show Charge and Adjustment Details: the system will include a table showing any changes to the charges within the specified date range of the report (including payments applied/unapplied)
- Show Totals for Each Tax Rate: if multiple tax rates exist within your account, enabling this option will show a separate total for each tax rate. Leaving this option disabled will just show one grand total.
- Landscape: will generate the report in Landscape mode (rather than Portrait).
- CHOOSE PROGRAM: selecting one or more specific programs will limit the results only to charges assigned to the selected program(s) and payments that were applied to them within the specified date range of the report. (Leaving this filter blank will include all programs.)
- CHOOSE CHARGE CATEGORIES: selecting one or more specific charge categories will limit the results only to charges assigned to the selected charge category/categories and payments which were applied to them within the specified date range of the report. (Leaving this filter blank will include all charge categories.)