Settling a Tax Declaration and Generating the Settlement Journal Entry

Steps to Settle a Tax Declaration

1. Navigate to “Accounting Reports” from the “Reports“
2. Then select “Tax Declaration” report.
3. Apply the desired filters (period, tax type, etc.) and click “Show Report.“
4. Click the “Settle Declaration” button.
5. A settlement popup appears showing:
   • Period: Read-only, pre-filled from the report’s From/To date filters.
   • Settlement Date: A required field — this becomes the journal entry date (not the creation date). Defaults to the last day of the selected period.
   • Settlement Account: One dropdown per tax type present in the report results. Each dropdown is searchable by account name or number, shows only sub-accounts (parent accounts appear as a tree, same as any account dropdown in the system), and is labeled with the tax name, e.g. “Settlement Account — VAT (15%).” If the report contains only one tax type, only one dropdown appears.
6. Select the settlement date and the settlement account(s) for each tax type, then click “Confirm.”
7. The system generates the settlement journal entry(s) and redirects you to the generated journal entry view.

Button Visibility

• The “Settle Declaration” button becomes active only after the report has been loaded (after clicking “Show Report“).
• The button is hidden if the report returns no results.

Already-Settled Periods

Before the popup opens, the system checks whether the tax(es) for the selected period have already been settled:

• If a settlement already exists for all tax types in the selected period, the popup does not open. Instead, an inline error message appears below the button: “The tax accounts for the selected period have already been settled. No further settlement entries are required.”
• If a settlement exists for some but not all tax types in the selected period, the popup opens, but the already-settled tax dropdown(s) are hidden, with a per-tax notice shown instead: “Already settled for this period.”

What the Generated Journal Entry Looks Like

One journal entry is generated per tax type, containing the following lines:

• Income VAT: The full income VAT amount for that tax type from the report.
• Outcome VAT: The full outcome VAT amount for that tax type from the report.
• Settlement Account — VAT: The net amount (Income VAT − Outcome VAT) posted to the selected settlement account.

The journal entry date matches the selected Settlement Date, and the description is auto-populated as: “Tax Settlement — [Tax Name] — [Period From] to [Period To].” The entry is created directly in Issued status.

Validation Messages

• If the settlement date is left empty: “Please select a settlement date.”
• If a settlement account is left empty for any tax type: “Please select a settlement account for [Tax Name].“