How do I change an expense to non tax-deductible?
An expense that is non tax-deductible must have the account's tax label adjusted to Expenses - Other Amounts (Non-deductible) in the Chart of Accounts. In the example below, account 38200 (fines) will have its tax label adjusted.
Note: You can add new expense accounts as Other Accounts in the Chart of Accounts.
If you are searching for pension non-deductible expenses this is managed through Fund Pension Policies.
|From the Main Toolbar, go to Accounting.||
|Select Chart of accounts from the list.||
2. Select account 38200 and from the edit screen, select More Details >>.
3. Under the Tax Label field, select Expenses - Other Amounts (non-deductible) from the drop down list. SF360 will now add this item back as a non deductible expense when calculating taxable income as part of the Create Entries process.
4. Select Save.
Complete these steps for changing the Tax Label of other accounts.
Note expense accounts appear in the 30000 and 40000 account ranges. When recording non tax-deductible expenses, it is the same process as recording deductible expenses through Transaction Input and Smart Matching.