Issue

How to process a Tax Only Income or Expense in Class?

Resolution

See the below steps:

Step 1: Add a new Income Expense Type

Step 2: Create a business event for Accounting purpose only

Step 3: Make the Income Expense Type taxable

Step 4: Create a business event for both Accounting and tax purpose

Step 5: Match Business events

Add a new Income Expense Type

Navigate to Business Level > Settings > Fund Income

1. Select Investment Income as Income Category
2. Click on Add a new Income Expense Type
3. From the pop-up screen, enter the Income type name and code
4. Select No to Tax Assessable 
5. Click on Save

Refer to User Guide Income and Expense Type Settings for detailed steps

Create a business event for Accounting purpose only

Navigate to Fund Level > Transactions > Fund Income >  General Investment Income

1. Select this new Income Expense Type to Investment Income Type Field
2. Enter a negative value into the Gross Payment Field. 

This business event will be used to offset the business event which is for both accounting and tax purpose

Make the Income Expense Type taxable

Navigate to Business Level > Settings > Fund Income 

1. Click on the new Income Expense Type
2. Tick "Yes"  to Tax Assessable
3. Choose the relevant Tax return label
4. Click on Save

Create a business event for both Accounting and tax purpose

Navigate to Fund Level > Transactions > Fund Income >  General Investment Income

1. Select this new Income Expense Type to Investment Income Type Field
2. Enter a positive value into the Gross Payment Field. 

Match Business Events

Navigate to Fund Level > Transactions > Match Transactions

As there is both a positive and a negative accounting figure, these will offset each other, leaving only the tax amount.