IN BRIEF:
This article explains how to reconcile values between the Tax Reconciliation Report (FIN-16) and the Program Deposit Split Report (FIN-4). These reports track similar financial data from different angles, and comparing them helps ensure accurate sales tax reporting and payment allocation.
- Overview
- Accessing the Reports
- Step-By-Step Instructions
- How do I reconcile the numbers?
- Troubleshooting & FAQs
- Related Articles
Overview
The Tax Reconciliation Report (FIN-16) provides totals for sales tax reporting. It summarizes financial transactions by program within a specific date range. This summary helps reconcile charges and payments, especially when used alongside the Category List Report (FIN-6) and Program Deposit Split Report (FIN-4).
The Program Deposit Split Report (FIN-4) shows when and where payments and credits were applied to charges. This includes both applied and unapplied payments.
When comparing these two reports:
- The Program Deposit Split Report includes both applied and unapplied payments.
- The Tax Reconciliation Report includes only applied payments.
- Because of this, adjustments to unapplied payments received before the report date range must be accounted for when reconciling.
Accessing the Reports
- From the main navigation menu, select Reports.
- Select Tax Reconciliation Report (FIN-16) to view tax-related summaries.
- Select Program Deposit Split Report (FIN-4) to view payment allocation details.
Step-By-Step Instructions
How do I reconcile the numbers?
In our example, we'll run both a Tax Reconciliation Report and Program Deposit Split Report for the same date range (for example, 5/1/2021-5/31/2021). When we do this, we get the following results:
Tax Reconciliation Report
Begin by totaling the "Collected Charges" and "Collected Taxes" in both the "Charge Dates" and "Adjustments" sections of the Tax Reconciliation Report.
| COLLECTED CHARGES (CHARGE DATES) |
+ | $ 17,108.45 |
| COLLECTED TAXES (CHARGE DATES) |
+ | $ 150.54 |
| COLLECTED CHARGES (ADJUSTMENTS) |
+ | $ 35,797.50 |
| COLLECTED TAXES (ADJUSTMENTS) |
- | $ 6.96 |
| TOTAL APPLIED PAYMENTS | = | $ 53,049.53 |
Program Deposit Split Report
From the Program Deposit Split Report, we need to look at the following areas:
Total Payments Received within the Date Range of the Report
Unapplied Payments Received within the Date Range of the Report
Adjustments Made to Payments Received Prior to the Start Date of the Report
To reconcile these numbers, we need to take the total payments received, then account for any unapplied payments (as these would not be included on the Tax Reconciliation Report). We also need to be sure to include any negative Unapplied Payments from the Adjustments section.
Note that when dealing with Unapplied Payments, we are actually subtracting positive values and adding negative values (as subtracting a negative value is equivalent to adding a positive value):
| TOTAL (PAYMENTS RECEIVED) | + | $ 53,269.75 |
| UNAPPLIED PAYMENTS (PAYMENTS RECEIVED) | - | $ 1,606.22 |
| * UNAPPLIED VOIDED PAYMENTS (PAYMENTS RECEIVED) |
+ | $ 620.00 |
| UNAPPLIED DELETED PAYMENTS (PAYMENTS RECEIVED) | + | $ 350.00 |
| UNAPPLIED REFUNDS (PAYMENTS RECEIVED) | + | $ 22.00 |
| NEGATIVE UNAPPLIED PAYMENT (ADJUSTMENTS) |
+ | $ 394.00 |
| TOTAL ADJUSTED PAYMENTS | = | $ 53,049.53 |
Therefore, the TOTAL APPLIED PAYMENTS for the Tax Reconciliation Report match the TOTAL ADJUSTED PAYMENTS for the Program Deposit Split Report.
* NOTE: If a payment was voided on any date other than when the original payment was made, these reports will not reconcile properly using the instructions above. If this is the case, it may be necessary to run a Bank Deposit Report (FIN-2) to help locate voided payments in order to determine where the discrepancy lies.
Troubleshooting & FAQs
-
Why do the reports not match even after adjusting for unapplied payments?
- The most common cause is a voided payment where the void date does not match the original payment date. This can cause the payment to fall outside the date range on one report but not the other.
- Run the Bank Deposit Report (FIN-2) to track voided transactions.
- The most common cause is a voided payment where the void date does not match the original payment date. This can cause the payment to fall outside the date range on one report but not the other.
-
Why does the Program Deposit Split Report show more payments than the Tax Reconciliation Report?
- The Program Deposit Split Report includes unapplied payments. These must be subtracted (or added if negative) to reconcile with the Tax Reconciliation Report.
-
Do I include adjustments from before the report date range?
- Yes. The Program Deposit Split Report displays adjustments made to payments received before the start date. These affect the reconciliation and must be accounted for.