Automatic accrual adjustments

The following accounts will only be adjusted if the Adjust balance sheet and next income per books...
field on the

TaxAc1

screen in the Tax Accrual folder is marked:

Schedule L, Other Current Assets: If the amount of tax expensed on the books is greater than the actual liability, the current assets account is adjusted.
Schedule L, Other Current Liabilities: If the amount of tax expensed on the books is less than the actual tax liability, then the current liabilities account is adjusted.
Schedule L, Retained Earnings: The adjusted net income per books is used in calculating retained earnings.
Schedule M-1, Net Income (Loss) per Books: In arriving at net income per books, the estimated amount of tax liability is used, so when the actual tax liability is known, the net income per books will need to be adjusted. If the amount of tax recorded on books is less than the actual tax liability, then net income per books is overstated and will need to be decreased by the amount of the accrual adjustment. If the amount of tax recorded on books is greater than the actual tax liability, then the net income per books is understated and will need to be increased by the amount of the accrual adjustment.
Schedule M-2, Net Income (Loss) per Books (C Corporations)
Schedule M-3, State and local current income tax expense

If the Adjust balance sheet and net income per books...
field is left blank, then the following accounts are adjusted: