3.3 How to configure Cash Basis Tax

1. 1. Click on Accounting

   

2. 2. Click on Configuration

   

3. 3. Click on Settings

   

4. 4. Uncheck Cash Basis

   

5. 5. Click on Configuration

   

6. 6. Click on Taxes

   

7. 7. Click on 10%

   

8. 8. Click on highlight

   

9. 9. Click on Duplicate

   

10. 10. Type "10% Cash Basis"

    

11. 11. Click on Advanced Options

    

12. 12. Select Based on Payment

    

13. 13. Select/Create a Tax - Transit Account

    

14. 14. Click on Save manually

    

How it affects the tax returns report

1. 15. Click on Customers

   

2. 16. Click on Invoices

   

3. 17. Create & post an invoice with the normal taxes

   

4. 18. Click on highlight

   

5. 19. Click on Duplicate

   

6. 20. Select the newly created Cash Basis Taxes

   

7. 21. Click on Journal Items

   

8. 22. It will post the taxes to Transit account instead of he usual tax account

   

9. 23. Click on Reporting

   

10. 24. Click on Tax Return

    

11. 25. The tax return report only reports for the 1st invoice created.

    

12. 26. Click on Customers

    

13. 27. Click on Invoices

    

14. 28. Select cash basis invoice created

    

15. 29. Click on Pay

    

16. 30. Click on Create Payment

    

17. 31. Click on Cash Basis Entries

    

18. 32. View Cash Basis Taxes entry

    

19. 33. The double entry created to adjust the taxes to the appropriate account

    

20. 34. Click on Reporting

    

21. 35. Click on Tax Return

    

22. 36. After payment is made, the tax on cash basis is now recognized