Report Sales Tax on Cash Basis

Hi ​@apallawala21 

In Acumatica, it can be handled by configuring a “Cash basis sales tax” on the “taxes” form. With this setup, sales tax is calculated and displayed on AR invoices, ensuring the customer balance is accurate. However, the tax is not reported or recognised as payable at invoice release. Instead, the tax is reported only when the customer payment is received and released. This is achieved by defining the tax as a Sales tax, assigning a Tax Agency, setting it as an output tax with the appropriate tax category and tax zone, and mapping the correct tax payable GL account. The standard AR invoice and payment flow ensures tax is calculated on the invoice and reported only upon payment, which satisfies the requirement. 

Please refer to the screenshots below.

Hope this helps.

Hi ​@pranavkhare34 

The sales tax did not work for me, somehow the type VAT and the Pending VAT check boxes did the work for me.

Thank you for your response. 

Hi ​@apallawala21 

In this case, a properly configured sales tax is a sustainable and ideal solution. Applying VAT is a workaround that might not work for all the documents in the long run (As VAT and sales tax work on different models). 

Can you please check while configuring a sales tax you have correctly selected

• Tax type - Sales tax
• Tax agency
• Reporting group - Output
• Tax zone 
• Tax category

If any of the above fields are missing, the tax may not work as we expect it to.

Hope this helps.

Hello ​@apallawala21 

Product Idea related to the same kind of requirement.

https://community.acumatica.com/ideas/sales-tax-reports-on-cash-received-30856

Thanks

Hi ​@pranavkhare34 

The Sales tax identifies the tax liability upon releasing the invoice, and the amount needs to be paid for the tax agency is updated accordingly. 

But in my scenario, I am not required to record the tax liability nor amount needs to be paid for the tax agency based on the Invoice but on the payment received. 

Hence, that’s why I mentioned that Sales Tax did not work for me. After your comment I even went through some videos as well as re-testing, but the result is same. 

Only pending VAT option gave me the capability of identifying the tax liability not upon invoice but the payment. 

Can you please correct me if I have not identified the Sales Tax behavior properly?

Thank You!