Accrued Tax Liability 1-5 (Credit Balance)
The tax accounts are credited with the tax amount for each tax type when an invoice (receivable) is created. The purpose of these five accounts is to be able to post taxes on cash basis (program is accrual). Taxes remain in these accounts until the entire invoice is paid.
At the time the invoice balance equals zero, these accounts are debited and the corresponding tax liability (expense) accounts are credited. No journal entries should be made to these accounts.