انتقل إلى المحتوى الرئيسي

Sales tax settlement periods

Sales tax settlement periods define the regulatory reporting frequencies and the specific calendar intervals at which your organisation is legally obligated to declare and remit taxes to a designated Sales Tax Authority.

By defining these periods, the system knows exactly how to aggregate daily tax transactions into formal, period-end summary reports.

Creating a settlement period​

To configure a settlement period, navigate to Tax > Setup > Sales tax > Sales tax settlement periods.

Each settlement period acts as a master scheduling container mapped to a specific regulatory body:

  • Name: A descriptive title for the reporting frequency (e.g., UAE VAT Returns - Quarterly).
  • Authority: The exact Sales tax authority to which these settlements apply (e.g., Federal Tax Authority (FTA)).

Duration settings​

This section dictates the underlying logic used to define the length of the reporting intervals.

  • Period interval unit: The base temporal unit of measurement (e.g., Months, Days, Years).
  • Duration: The numerical multiplier that comprises a single reporting period. For instance, to configure a quarterly return, the interval unit must be set to Months and the duration to 3.

Period intervals​

The Period intervals grid displays the actual, concrete calendar segments (defined by a From date and To date) that the system will use to capture and aggregate tax transactions.

While the system can generate these automatically based on your duration settings, you can also manually append custom intervals using the + Add period action button. This is useful for irregular foundational periods or transitional fiscal years.

As time progresses and tax declarations are formally settled and paid, the Status of these intervals will transition from Open to Closed.

Period Status Integrity

Financial transactions cannot be posted into a settlement period that has been formally closed. You must ensure all operational data entry (invoicing, adjustments) is rigorously finalised prior to executing the period-end tax settlement routine.

Viewing Period Transactions​

To audit the underlying financial data accumulating within a specific, open interval, highlight the interval row and click the View transactions button.

This action opens the Tax period transactions inquiry view, providing a granular, line-by-line audit trail of every tax event captured within that specific timeframe. This grid is an indispensable reconciliation tool, detailing:

  • The transaction Date and the authoritative Voucher number.
  • The originating Source document (e.g., Purchase invoice, Sales invoice).
  • The exact mathematical Tax Code applied.
  • The calculated Tax Amount and the base Source Amount.
  • The financial Direction of the tax (e.g., Tax receivable for input VAT, Tax payable for output VAT).

Next Steps​

With the settlement calendar and authority infrastructure formally established, you must now configure the actual mathematical percentages and calculation rules. Proceed to the Sales tax codes documentation.