Recognition of Payment by Check

Use

With deferred taxes, taxes are not recognized until a payment is made. By default, the system considers a payment by check to be made as soon as you issue it to a customer, or receive it from a vendor. In some countries, however, checks are not recognized until they clear. The system handles this as described below.

Note Note

The information here applies not just to checks, but to all forms of payment that are managed using bank subaccounts .

End of the note.

Prerequisites

You have switched on the check in Customizing (see Customizing for the Deferred Tax Transfer Program ).
You use bank subaccounts to record payments by check pending clearing.

Features

When you run the Deferred Tax Transfer program, it only transfers taxes on payments by check if the check has cleared. If not, the program does not recognize the payment and does not transfer the taxes.