Net profit in tax reconciliation should be pre dividends and tax expense (not after)
We use the standard chart of accounts in Xero (so I don't believe it is a coding issue ?) but the company working papers I prepared does not allow you to adjust the net profit/loss (accounting) and it is picking up post tax and dividends which is frustrating.
Stacey Richards
shared this idea
Hi team, this has now been released! You'll find Net profit has been updated to be pre-dividends, and can be manually overridden, and you'll get a warning when it's been overridden. 😊
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Narelle Cipriano
commented
I agree that this needs to be change. I have also added back dividends and tax expense as an adjustment for testing purposes, but it should be fixed before it goes "live" to firms.
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Megan Murphy
commented
This one is a big problem, I have added the tax expense back as an adjustment to make the workpaper work, but the "net profit per P&L" line in the tax reconciliation workpaper definitely needs to be before tax and dividends.