How Do I Compare the Tax Reconciliation Report (FIN-16) With the Program Deposit Split Report (FIN-4)?

IN THIS ARTICLE:
Learn how to reconcile entries between payments reflected on the Tax Reconciliation Report and the Program Deposit Split Report.

What is the Tax Reconciliation Report (FIN-16)?

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).

What is the Program Deposit Split Report (FIN-4)?

The Program Deposit Split Report reflects when and where payments and/or credits were applied to charges.

What do I need to know about comparing these two reports?

The important thing to remember when trying to reconcile the two reports is that while the Program Deposit Split Report includes both applied and unapplied payments, the Tax Reconciliation Report only reflects applied payments.

This means that when we look at the Program Deposit Split Report, we have to take into account any adjustments made to unapplied payments that were received prior to the date range of the report to get the full picture.

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

tax_reconciliation_report01.png

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

pdsr01-total.png

Unapplied Payments Received within the Date Range of the Report

pdsr02-unapplied.png

Adjustments Made to Payments Received Prior to the Start Date of the Report

pdsr03-unapplied_adjustment.png

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.

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