Balancing the Sales Tax Report
1. Most often, the customer has re-billed a metered service, and not re-done the auto-billing to re-calculate the sales tax/other dependent services. This can be verified by making a copy of the database, and re-running auto-bill. (checking override of course)
2. The customer has a taxable service, but the tax service was not added to the client. Exempt customers need the tax service, and to be marked exempt in the customer record or billing records. Customers with taxable services but no tax service report billing as “Non Taxable” on the Sales Tax Report.
3. Taxable services, with the tax service disconnected or terminated. Customers with the tax service disconnected or terminated show billings as taxable, but no tax is billed.
4. Taxable service in conjunction with seasonal frequency on tax.
5. Manual billing. Tax could be calculated incorrectly in manual, or taxable service changed after tax calculated and the tax not re-calculated.
6. Adjustments to tax, or improperly made adjustments without the tax calculated on them.
7. Purchase Cost Adjustment re-done, but tax not re-calculated.
8. Tax rates may have been cleared for winter moratorium.
9. Customer has been changed to “Exempt” or “Partially Exempt” status since the tax was billed.
10. Final bills where either a. the tax was not added back yet because the billing period crosses calendar month b. the user forgot to add it back in until the end of billing period
11. The sales tax service is marked as taxable.
Note: Grand Total on Sales Tax Report DOES NOT include sales tax sales. Check sales tax rates for tax to balance to table lists.