AI.TaxAssist has an in-built validation check that is performed on the Workspace to tally ledger items to P/L items based on the financial documents uploaded.
As a user in the role of the Preparer after you have made all the necessary changes to the Workspace, you can click on the APPROVE ALL button to generate the Draft Tax Computation.
This invokes the validation check. If there are any discrepancies, the system indicates the management accounts in the workspace that do not tally with the management accounts on the Profit and Loss statement.
3. You can then make the necessary changes to the Workspace in order to clear the discrepancies.
4. Descrepancies can be any of the following,
1. GL or PL side showing NOT FOUND - This means that the item is not found on the GL or PL side. It could be because the same item is not described with the same words on both sides. If you can verify this is the issue for the validation showing NOT FOUND, you can choose to ignore and click on Continue. Only the GL entries in the Workspace are considered in the draft tax computation preparation.
2. Mismatch in amounts - The items are shown on both GL and PL sides but the amounts are not the same. This could be due to the following reasons,
a. Consolidations or Breakup of management accounts - This issue could be due to management accounts presented differently in the ledger (i.e. workspace items), you can update the mapping of the rows to the correct management account, by clicking on CHANGE FIELDS - ACCOUNT and selected the appropriate management accounts. For e.g. in the image above there are two accounts in the workspace that map to one account on the Profit and Loss accounts. Hence you can recognise this and ignore the error or map the management accounts for these ledger accounts. Only the GL entries in the Workspace are considered in the draft tax computation preparation.
b. Incorrect source documents - It could be becuase the GL and PL are indeed different and that would need an investigation on the source documents.
c. Manipulation of GL in workspace - Mismatch in amounts could occur due to changes made in the Workspace such as adding row or adding GL lines.
3. Mismatch in totals - This would show a mismatch in the GL and PL totals. In this case we strongly recommend analysing the cause for the mismatch and making the necessary changes in the Workspace.
5. The system also tracks OSIs that have not been resolved (OSI Status - Open) upon clicking the APPROVE ALL button.
6. Preparer can either resolve the OSIs (OSI status - Done) or choose to ignore the check and click on CONTINUE button to proceed.