Abacus Introduction
Welcome to Abacus
Abacus is Tax compliance's centralized platform for managing the complete Tax compliance lifecycle. The application transforms complex, multi-jurisdictional Tax compliance into a streamlined, automated process.
What Abacus Does
Core Purpose: Abacus ensures accurate, timely tax return submissions across all jurisdictions by:
- Collecting transaction data from multiple sources
- Tax
- Validating data against country-specific rules
- Calculating tax positions automatically
- Managing review and approval workflows
- Facilitating submission to tax authorities
- Maintaining complete audit documentation The platform is designed to be flexible and configurable, allowing it to adapt to the specific needs of your business and the various tax regimes you operate in.
Who Uses Abacus
| Role | Responsibilities |
|---|---|
| Clients | Upload data/tax determination, review calculations, approve filings |
| Tax Associates | Process transactions, manage filings, coordinate submissions |
| Tax Managers | Maintain Tax Engine mappings, configure filing requirements |
| Filers | Submit approved returns to tax authority portals |
Know the Lingo
Filings and Filing Types
A Filing is the central concept in Abacus. It represents a single tax return for a specific entity, in a specific jurisdiction, for a specific time period (e.g., a monthly Tax return for a UK company). Each filing is a container for all the transaction data and actions related to a single tax return.
There are different Filing Types, which define the kind of tax return being filed. Each filing type has its own set of rules and a specific workflow. The filing type determines the structure of the tax return, the data that needs to be collected, and the validation rules that are applied.
Filings can also be categorized as:
- Standard: A regular, periodic filing that is part of your normal compliance cycle (configured via obligations).
- Retrospective: A filing for a past period that was not filed on time. This allows you to catch up on your compliance obligations.
- Correction: A filing that corrects a previously filed return. This is used to amend a return that has already been submitted to the tax authorities. See Correction Process for details.
Taxable Jurisdiction
A Taxable Jurisdiction is a country or region where you have tax obligations. Abacus allows you to manage your compliance for multiple jurisdictions. Each jurisdiction has its own set of tax rules, and Abacus is configured to handle these different requirements. Entities can operate in multiple jurisdictions.
Transactions and Transaction Types
A Transaction represents a single financial event, such as a sales invoice or a purchase invoice. Abacus processes these transactions through the Transaction Wizard to calculate the figures for your tax returns. Each transaction contains detailed information, including the invoice date, net amount, tax amount, and details about the customer.
Each transaction is assigned a Transaction Type, which is a detailed classification of the transaction. The transaction type is crucial, as it determines how the transaction is treated for tax purposes. It defines characteristics such as:
- input or output: Whether it's an input (a purchase) or an output (a sale).
- goods or services: Whether the transaction is for goods or services.
- tax rate type: The type of tax rate that applies (e.g., standard, reduced, zero).
- is credit note: Whether the transaction is a credit note, which reverses a previous transaction.
The transaction type also defines a set of validation checks that are performed on the transaction data. These checks ensure the integrity and accuracy of your data.