Xero-how do I process a journal for deferred tax?

Xero-how do I process a journal for deferred tax?

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I can only see a deferred tax account in the SCOA under the balance sheet.  Can anyone advise?

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By johngroganjga
28th Feb 2014 16:52

Your question is not very clear but it may help if I just point out that the opposite side of all entries in the deferred tax balance sheet account is the tax charge in the profit and loss account.

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By Jasper21
28th Feb 2014 17:23

Thanks John, I'm clear on that.  I just couldn't see a P&L account in the XERO SCOA to post the P&L entry to (the BS account exists).  I have created a new P&L account myself to be able to post the journal, but assumed this would be a standard transaction that wouldn't require me to do this.

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Teignmouth
By Paul Scholes
01st Mar 2014 08:43

I use the Corp Tax Acc

Hi - for the P&L I just use the Corporation Tax account (500) (renamed CT & DT) for CT & DT and, as you say, the DT account in the Balance Sheet is currently under "Non Current liabilities"

I have no idea why they don't do a Tax type account in the P&L COA, it's weird having tax as an "overhead" but perhaps that's where it appears in other countries?  I've tried searching for Corporation Tax in the help screen and gave up.

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Haider Ali
By hyderaly
02nd Mar 2014 11:48

COA... less than perfect
I wouldn't count on the SCOA to be adequate for all purposes... Another one is where they have he owner drawings nominal in Limited Company charts. Having said that, yes Deferred Tax P&L nominal does not exist. You will either have to create it or use he Tax nominal.

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Stephen Quay
By squay
02nd Mar 2014 20:42

Don't use the Xero SCOA

When we first started using Xero our first client used the SCOA and since then we have had to constantly tweak it as they expanded their business. Since this first client we set up our own custom COAs; one each for ltd companies, sole traders and partnerships. Makes life so much easier.

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