Introduction

There may be instances when you face reconciliation challenges, such as discrepancies between the tax amounts reported on your returns and the tax amounts charged from invoices in your billing system. To effectively identify and resolve these discrepancies, it’s crucial to understand the entire tax charging process — from calculation to charging — and to review it when unexpected interruptions are observed.

The tax charging process through Anrok

Anrok integrates with your billing system to handle sales tax charging. The process involves two key steps of determining the amount of tax to charge and adding it to transactions in your billing system. This flow ensures accurate tax calculation and charging from your customers:

1. Your billing system sends an invoice to Anrok.
2. Anrok calculates the tax due amount.
3. Anrok determines the tax amount to charge from your customer, depending on whether you, the seller, or the customer is responsible for paying it. This is determined by the tax charging method in the jurisdiction at the time of invoicing. See Change a jurisdiction's tax charging method.
4. The tax amount to charge is synced with your billing system.
5. Once the tax amount to charge is added to your billing system's invoice, it is considered tax charged.
6. The tax due amount is included on your next return, then remitted as tax paid.
7. The tax payment amount is deducted from your bank account.
8. If Anrok is unable to process the invoice, the transaction will remain as an unprocessed transaction in Anrok. See Resolve unprocessed transactions.

Overview of transaction discrepancies

During the tax charging process between Anrok and your billing system, events can occur that result in a difference between the tax amount to charge and the tax charged. These differences in amounts are referred to as transaction discrepancies, in which tax is under/over charged on an invoice. Transaction discrepancies are usually caused by the following:

• Billing integration issue — An unexpected issue with your billing system integration is preventing Anrok from adding the tax amount to your invoices.
• Tax recalculated after invoice payment — A finalized invoice was reprocessed in Anrok, triggering a tax recalculation. The recalculated tax due amount differed from the tax charged from the customer at the time of payment. Tax amounts will often differ after reprocessing due to a line item's tax category being reconfigured, an exemption certificate being uploaded, or a tax law change occurring after the payment.
• Anrok overridden as tax provider — If you are moving from a different tax provider to Anrok, you may have elected to continue to use your previous tax provider for tax calculations until your return period closes. Differences between your tax provider's and Anrok's calculations will result in discrepancies.

Anrok provides you with the option to review transaction discrepancies detected on your transactions, enabling you to more easily validate financial data accuracy through reconciliation and identify potential integration issues between Anrok and your billing system.

Review transaction discrepancies

You can review transaction discrepancies, in which tax was under/over charged on an invoice, to further investigate why they occurred and account for them during reconciliation.

Try reviewing transaction discrepancies in the demo above ☝️

1. In the Anrok app , go to Transactions. Take me there!
2. Under the Discrepancies tab, review your transaction(s) Tax due, Tax charged, and Under/over charged amounts.
3. Select Export discrepancies, choose a date range, then click Export.