Tax Differences
Tax differences are variations in tax amounts caused by the different rules for recognizing income and expenses between entries for book accounting and tax accounting.
In [!INCLUDE[prod_short](../../includes/prod_short.md)], you can set up tax difference registers and tax difference journals to track and manage differences between book accounting and tax accounting amounts.
Preparing the Chart of Accounts
Before you set up tax differences, you will have to make sure that your chart of accounts is set up to correctly handle tax accounting and tax differences. At a minimum, your chart of accounts must contain tax difference accounts for income and expense transactions.
Getting Started with Tax Differences
To set up and view tax difference entries, you will use the following tables, which support tax differences windows.
| Window | Description |
|---|---|
| Tax Diff. Posting Group | Specifies posting groups for tax difference transactions. |
| Tax Diff. Journal Template | Specifies the journals that are used for posting tax difference entries. |
| Tax Calc. Corresp. Entry | Specifies tax difference information that is needed for external reports and forms. |
| Tax Diff. Journal Line | Specifies posted tax difference journal entries. |
Related information
Setting up Tax Difference Calculation
Tax Difference Registers
Tax Accounting
Tax Registers