PS: Tax Report Calculation Logic

The Context: ProfitSword calculates tax variances on the Tax Report to help users reconcile daily revenue. This logic relies on Tax Rates being set up in Accounting Admin > Tax Rates.

The Data:

• Gross Revenue: Total revenue imported from the PMS Income Journal.
• Net Revenue: Gross Revenue minus Tax Exempt Revenue entered in Input Tax Exempt.
• Tax Estimate: Net Revenue multiplied by the Tax Rate defined in the system.
• Net Tax Collected: Gross Tax from IJ minus any Tax Adjustments.
• Tax Difference: Tax Estimate minus Net Tax Collected.
• Net Difference: Tax Difference divided by the Tax Rate. (This tells you how much revenue needs to be exempted to balance the tax).

Limits:

• Rounding: Small variances may occur due to rounding differences between the PMS and ProfitSword. These are typically handled via manual adjustments.