Sales Tax Collected vs Remitted Reconciliation Tool

Reconcile actual sales-tax liability collection/remittance/refund ledger with reported closing balance, preserving possible debit balance and unexplained difference; tax rates, nexus and legal remittance dates are not supplied.

Description

Sales-tax payable reconciles opening liability with collections, remittances and customer refunds.

Sales-tax payable reconciles opening liability with collections, remittances and customer refunds. A debit balance or unexplained discrepancy should retain its sign.^[1]

The returned values include Expected closing sales tax payable minor, Signed reported minus expected tax payable minor. The How section below explains the calculation, input rules and interpretation.

When to use Sales Tax Collected vs Remitted Reconciliation Tool

Use Sales Tax Collected vs Remitted Reconciliation Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No tax rate, nexus or legal remittance deadline is supplied.

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.

How to use Sales Tax Collected vs Remitted Reconciliation Tool and understand its results

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
Enter openingSalesTaxPayableMinor, taxCollectedMinor, taxRemittedMinor, taxRefundedToCustomersMinor, reportedClosingSalesTaxPayableMinor using the field table and calculation rules, then run the tool.
Read expectedClosingSalesTaxPayableMinor, signedReportedMinusExpectedTaxPayableMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
openingSalesTaxPayableMinor	Opening sales tax payable minor	number	Required
taxCollectedMinor	Tax collected minor	list of number	Required
taxRemittedMinor	Tax remitted minor	list of number	Required
taxRefundedToCustomersMinor	Tax refunded to customers minor	list of number	Required
reportedClosingSalesTaxPayableMinor	Reported closing sales tax payable minor	number	Required

Enter signed safe-integer opening/reported balances and nonnegative safe-integer minor-unit ledgers, which may be empty and need not align. Return expected closing payable and signed discrepancy using checked exact sums.

expected=opening+sum(collected)−sum(remitted)−sum(refunded); gap=reported−expected

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
expectedClosingSalesTaxPayableMinor	Expected closing sales tax payable minor	number
signedReportedMinusExpectedTaxPayableMinor	Signed reported minus expected tax payable minor	number

json

{
  "input": {
    "openingSalesTaxPayableMinor": 100,
    "taxCollectedMinor": [
      50,
      30
    ],
    "taxRemittedMinor": [
      60
    ],
    "taxRefundedToCustomersMinor": [
      10
    ],
    "reportedClosingSalesTaxPayableMinor": 50
  },
  "output": {
    "expectedClosingSalesTaxPayableMinor": 110,
    "signedReportedMinusExpectedTaxPayableMinor": -60
  }
}

Limitations and assumptions

No tax rate, nexus or legal remittance deadline is supplied.

Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries and string lists to 128 entries of at most 128 characters. Follow any smaller limits above. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Bank Reconciliation Outstanding Items Bridge Tool: Bank reconciliation adjusts statement and book balances on their respective sides. A residual discrepancy must remain explicit instead of adding a plug. For a complementary task, use Balance Sheet Equation Balancer A Equals L Plus E Tool: The accounting equation compares net assets with net liabilities plus equity. Signed contra accounts belong in their supplied sections.

References

Sales Tax Collected vs Remitted Reconciliation Tool — tool.io

Similar or alternative tools

Bank Reconciliation Outstanding Items Bridge Tool
Bank reconciliation adjusts statement and book balances on their respective sides. A residual discrepancy must remain explicit instead of adding a plug.
Balance Sheet Equation Balancer A Equals L Plus E Tool
The accounting equation compares net assets with net liabilities plus equity. Signed contra accounts belong in their supplied sections.