Warning
Product support for the ended on September 30, 2020.
- Write Up CS
- Payroll CS
- Engagement CS
- Client Bookkeeping Solution
- Financial Analysis CS
Help & How-To Center content for the Creative Solutions Accounting platform may be outdated and is used at your own risk.
Use the Income Tax tab of the Automatic Journal Entries dialog to set up automatic journal entries based on state or Federal income taxes. When entering income tax information, keep in mind that the application calculates state tax amounts first and then uses that information when calculating federal income tax amounts. If you want to create automatic journal entries for both state and federal income taxes, you must create two separate entries, one each for federal and state. The application automatically annualizes the income before looking at the table.
Note: The application includes a predefined Federal tax table. To edit or add income tax tables, or to set up a fixed percentage, click the Table button.
Choose Automatic Journal Entries from the Setup menu and then click the Income Tax tab.
See also: Automatic Journal Entries [Setup menu]
Special information
For additional information and examples, see Automatic Journal Entries in Write-Up CS (PDF).
If multiple automatic journal entries have been set up for the client, the application completes the calculations in the following order: (1) percentage; (2) inventory; (3) state tax; (4) federal tax; (5) overdraft.
Fields & buttons
Choose either State or Federal as the type of automatic journal entry for income taxes.
Select a tax table from the drop-down list.
To add or edit tables to the list, click the Tables button in the lower right-hand corner of this dialog.
From the drop-down list, choose the account number that will be the ending account for the range of revenue and expense account numbers that you want to include.
Choose your tax liability account number from the drop-down list.
Choose a Federal tax expense account from the drop-down list.
Note: This field is enabled only if you have selected Federal as the type for the automatic income tax journal entry.
Choose a state tax expense account from the drop-down list.
If you need to adjust taxable income by an amount that is not included in the current year's balances (such as the 1120 Schedule M-1 items), enter the amount here. Enter a downward adjustment as a negative amount.
Note: This amount will not be annualized, therefore the amount you enter should be the amount for the entire year.
Enter the annual dollar amount for the application to use when adjusting the actual tax amount. For example, if there will be a year end tax credit, then enter a negative amount here to adjust the tax. Use the amount for the entire year.
The exact opposite of the transaction that you enter in this period will be made in the next period. The reversing transaction will use the period end date as the transaction date and the reference will be incremented by .1.
Opens the Corporate Income Tax Information dialog where you may specify the tax rates for different income amounts.
You can set up either state fixed percentages or tables or additional federal fixed percentages or tables, as needed.
CREATIVE SOLUTIONS ACCOUNTING
