What is 'accrued tax' in SAP SRD-CC - Cross-Components?

accrued tax - Overview

• Component: SRD-CC

• Component Name: Cross-Components

• Description: A tax included in the cost of purchases and payable to the tax authorities at regular intervals of time. Accrued tax is usually posted to a separate G/L account.

accrued tax - Details

• 
  Key Concepts: 
  Accrued tax is a term used in SAP to refer to taxes that have been incurred but not yet paid. It is a liability that must be reported on the company’s financial statements. Accrued taxes are typically calculated based on the company’s estimated tax rate and the amount of income earned during the period.
  
  How to use it: 
  In SAP, accrued taxes are recorded in the SRD-CC Cross-Components module. This module allows users to enter the estimated tax rate and the amount of income earned during the period. The system then calculates the amount of accrued taxes that must be reported on the company’s financial statements.
  
  Tips & Tricks: 
  It is important to ensure that the estimated tax rate and income amounts entered into the SRD-CC Cross-Components module are accurate. This will ensure that the amount of accrued taxes reported on the company’s financial statements is accurate.
  
  Related Information: 
  Accrued taxes are just one type of liability that must be reported on a company’s financial statements. Other liabilities include accounts payable, deferred revenue, and long-term debt.