Generation of Profit Tax Documents
The system records all business transactions in two separate ledgers, in parallel: once in the general ledger (for financial accounting), and once in the special purpose ledger (for profit tax accounting): Whenever you record a business transaction in the general ledger, the system copies the accounting document data to the special purpose ledger for profit tax. These documents in the special purpose ledger are termed “profit tax documents.”
Prerequisites
So that the system can generate profit tax documents as described in the following, you have made the settings described in Customizing for Profit Tax.
Features
Assignment of Profit Tax Documents to Profit Tax Objects
In the special purpose ledger, the profit tax documents are structured in a hierarchy, for example, into different kinds of expenses. Each of the nodes in the hierarchy is known as a “profit tax object.” When the system generates a profit tax document, it automatically assigns it to the appropriate profit tax object and stores the profit tax object's ID in the profit tax document.
Example
In the general ledger, you make an expense posting for one month's fire insurance. The system automatically generates the normal accounting document, and, in the special purpose ledger, a profit tax document. It assigns the profit tax document to the Insurance Expense object in the profit tax hierarchy.
If the system does not find a profit tax object in the profit tax hierarchy, it assigns the document to an object for unassigned documents. You can display a list of all such documents using the Unassigned Accounting Documents report, and adjust the hierarchy as necessary.
Activities
At the end of the fiscal period, you make the necessary adjustment postings as described in Closing for Profit Tax Accounting.