The data reconciliation area of Compliance contains any tax transactions you have received from IR or that you have created (either manually or via a tax return, e.g. a transfer of credit).

These transactions represent the current and expected activity relevant to each tax year of a client.

Your tax agency is linked to IR (via Settings > Agency details) and is delivered transactions on the days that IR will supply them, following the overnight processing they have completed.

The transactions that you receive from IR will be automatically reconciled for you where they meet the criteria set down by the internal business rules:

• MYOB transaction exists, and
• The date is within 7 calendar days of the IR transaction, and
• The transaction type is the same, e.g. payment, and
• The amount is within 5 cents of the IR transaction.

Where a transaction does not have an existing MYOB transaction to reconcile with, or the properties of that IR transaction do not meet all the conditions to enable auto-reconciling to take place, then it will require manual processing instead.

Data Reconciliation can be accessed from either All clients (Practice level view) or from a client record (client level view).

This listing shows all tax clients, separated into two sections, the first being any tax clients with unreconciled transactions, the second section being all other tax clients (with no outstanding transactions to be processed).

Details shown in the listing currently include:

• Client name
• Entity type
• Available periods (the years that data is available for)
• Last refreshed (the last date any new transactions were received for the client)
• Alerts (the number of unreconciled transactions for the client, including assessments. You can view the number by hovering your mouse cursor over the alert icon).

Searching by client name will use a wildcard approach, meaning any client name with matching text will be displayed, regardless of where in their name that text appears.
By applying any available filters, this list will be reduced to only those case that meet the criteria you have specified. The filters applied will generally remain in place until you change them or use the ‘Reset’ option.

The listing can also be sorted by the client name (A–Z or Z–A).

When on a client record and you access Data Reconciliation from the Compliance button, you will be taken to the latest year available (e.g. currently the 2022 year).
From here you will see a number of panels, depending on the transactions that exist:

• Unreconciled transactions – a list of any MYOB or IR transactions that exist and have not yet been reconciled.
• IRD statements – a list of Provisional tax, Terminal tax, UOMI and penalties that have been assessed or charged by IR.
• Reconciled transactions – a list of all MYOB and IR transactions that have been reconciled together, either in pairs or in a group.

You will also have the ‘Refresh IRD data’ button available on the client. When you click on this it will perform an ad hoc retrieval from IR (using your myIR credentials that you have already set up) for just that client. This will pull in any new transactions that have occurred on the client’s IR account since the last overnight download occurred.

This is not a function you would need to do regularly, but more for cases where you need to update the new account transactions into MYOB Practice, and cannot wait until the next overnight delivery occurs.

• From the All Clients contact list view click onto Compliance, then click Data Reconciliation.
• Data Reconciliation list shows details of each client that has one or more transactions to be reconciled. The alert (yellow triangle) identifies the number of transactions involved.

• For example, Partner, Staff member, Unreconciled alert (IR transactions or MYOB transactions), etc.
• The ‘Staff member’ drop-down list comprises of names of staff who are recorded on the ‘Team’ panel of the Responsibility tab of a client in the AE/AO Desktop. The drop-down list shows their name as well as their ‘role’, as defined on any client’s Responsibility tab. You may see names repeated, which is because they have been recorded with more than one Team ‘role’ in AE/AO.
  Learn more about Team responsibility.

• To focus on just the unreconciled transactions that have been received from IR, select ‘IR transactions’ from the ‘Unreconciled alert’ drop-down list. The filtered cases that are displayed involve transactions that have not been auto-reconciled, either because they did not match the MYOB transaction, or there was no MYOB transaction to match against.

• To focus on just those transactions that have been generated by internal processes or created manually (by staff), and are currently unreconciled, filter on MYOB transactions from the Unreconciled alert drop-down list. These cases may include transactions that have not eventuated and therefore should be considered for removal.

• Click on the name of the client to drill into their Data Reconciliation view.
• This will take you to the latest year available (e.g. currently the 2022 year).
• From here you can navigate to any other tax year available for that client, by using the drop-down list.
• You can also perform an ad hoc retrieval of any new transactions that have been recorded by IR since the last bulk download of transactions took place.

• Review the transactions that appear and determine what action to take. You may need to review other information held regarding the client before you choose to accept the IR transaction.
• Take the required action for the transaction (Add or Reconcile).
  Ways to process unreconciled transactions:
  

Review each year to ensure there are no other outstanding transactions to process.

Click on the drop-down list to select another year.

Click All clients in the sidebar to return to the All clients Data reconciliation listing.

You can manually create an MYOB transaction to record on the client’s tax year. This is performed on the Unreconciled transactions panel by clicking on the purple action link to add the new entry:

This will create a new entry which you can then fill in details to record the Transaction type, Date, Description, and MYOB transaction amount:

Click Select a type and choose a transaction typefrom the listed options:

To attach a document to the transaction, click on the paperclip icon to the far right of the transaction line and then follow the prompt to locate and upload/attach the document. The paperclip icon changes to purple to indicate it has one or more documents attached to the transaction.

The flow of transactions within the Compliance areas of MYOB Practice Tax, and where they are used, differs depending on their source (MYOB or IR) and their status (Unreconciled or Reconciled).

As a general guide, an explanation of these is outlined below:

* Any time a MYOB transaction is reconciled, the system will always use the reconciled IR transaction instead.

See also the table in the To sync tax return data table.

Tax return calculations

Currently, it shows the details based on the tax return and any transactions (e.g. transfers) that form part of its resulting output, as well as transaction recorded in Data Reconciliation. The Data Reconciliation transactions will generally consist of a mixture of unreconciled MYOB transactions and reconciled IR transactions.

Tax Notice calculations

Currently, if we’re dealing with RIT, the system uses the calculated figure from the completed tax return. However, once that has been reconciled it will use the IR figure instead.
If we’re dealing with any other transaction types (for example, payments or transfers) then the system will only use IR transactions (regardless of whether they are reconciled or not).