RRS — Taxes and royalties
Sales tax reconciliation across five states, Ohio CAT tax, miscellaneous payables, and the BKC royalty and ad fund accrual for Rackson Restaurants (E01).
Four workpapers covering the RRS multi-state tax obligations and the BKC royalty and advertising fund accruals.
Source: Rackson_Workpaper_Instructions.docx — Part I, Taxes & Royalties.
22200 — Sales tax reconciliation
Owner: Jeff / Betsy
Reconciles sales tax collected per SICOM (POS) against actual payments filed and the GL balance for acct 22200, by store and state — NJ, OH, NY, MD, PA.
Pull for the prior month and the current period (first day of the period through period end). Enter or confirm the amounts in the SICOM DATA / SALES TAX COLLECTED columns.
Enter prior-month prepayments (vouchers such as PAPP2604, OHTAX2604a) and current-month prepayments (OHTAX2605a, PAPp2605) from the Intacct GL detail. The workpaper uses formulas pulling from the GL Detail tab — confirm that tab is refreshed with current period data.
The CALCULATED BALANCE column is the expected GL balance based on tax collected less payments. Pull the Intacct Dimension Balance report for acct 22200 and paste into the GL BALANCES columns (Opening, Period, Closing).
Review the Variance Posted column — any non-zero value indicates a difference between calculated and actual GL balance. Investigate and post an adjusting entry if needed.
For states with quarterly returns (Ohio, Maryland), confirm whether a return was filed this period. Ohio CAT and Ohio sales tax are separate filings — coordinate with the 22250 workpaper below.
Marketplace facilitator tax is the most common source of an apparent variance. Delivery platforms collect and remit sales tax directly to the state on the operator's behalf, and that must be backed out of Rackson's own liability calculation. See Sales tax review.
Sales tax collected per the POS is not always the same figure used when the return is filed. Understand the difference between "tax we calculated we should have collected" and "tax we actually remitted per the filed return" when explaining a variance — a difference between the two reflects normal over/under-collection at store level, not necessarily an error.
22250 — Ohio CAT tax payable
Owner: Maureen
Calculates and tracks the Ohio Commercial Activity Tax at 0.26% on Ohio-taxable gross receipts for the Ohio BK stores (342, 368, 594, 652, 704). Paid quarterly via the Ohio Gateway portal.
Pull total gross receipts for each Ohio store for the period from RTI or the sales journal. Enter in the Sales column for each store.
CAT tax = Sales × 0.26%. Illustrative: Store 342 ($148,988 × 0.26% = $387.37); Store 368 ($258,992 × 0.26% = $673.38).
Use IMPORT_P5_OH_CAT_Tax.csv — GJ to acct 22250 by Ohio store location. Use IMPORT_P5_OH_CAT_Tax_Var.csv for any variance adjustment.
File the return on the Ohio Gateway portal. Confirm the current quarter due date before filing.
Credentials are not recorded in this knowledge base. The Ohio Gateway login for Rackson is held in the engagement's permanent file alongside the other client system credentials. Retrieve it from there.
After filing: DR 22250 / CR 10105 (TD Operating). Confirm the acct 22250 balance returns to zero, or reflects only the next quarter's accrual.
Files: IMPORT_P5_OH_CAT_Tax.csv · IMPORT_P5_OH_CAT_Tax_Var.csv
On the close checklist this appears simply as "CAT Tax" on WD2 — distinct from sales tax (its own WD6 task) and from property tax.
22350 — Miscellaneous payables
Owner: Chee
Schedules open miscellaneous payables not in AP — primarily the McLamore Foundation accrual.
Confirm the GL balance for acct 22350 matches the workpaper total.
If the remaining McLamore balance is paid, record DR 22350 / CR Cash and clear the line.
If new miscellaneous payables arise — amounts owed that don't belong in AP — add them with date, description, amount, and expected payment date.
Confirm whether the remaining McLamore balance should be accrued further or left as a payable pending final invoice.
What this account actually holds. Donations received on the client's behalf, largely through Burger King Corp, and paid back out to the intended charitable recipient. Detail lines include an accrual ("To accrue for Mclamore per Store") and offsetting bills to the Burger King McLamore Foundation and Honor Flight Connecticut — expect charity names rather than vendor names in the detail.
Mike's team also tracks a version of this, so there is duplication by design. Don't spend time reconciling the two unless something has been sitting on the schedule for an unusually long time — then follow up with Mike directly.
22400 / 22600 — Royalty and ad fund reconciliation
Owner: Maureen
Reconciles monthly royalty (acct 22400, 5% of net sales) and advertising fund (acct 22600, 4% of net sales) payments against BKC invoices by store. Produces the accrual import for periods when the invoice hasn't arrived.
When the BKC royalty invoice arrives, paste the store-level line items into the applicable monthly tab (Dec, Jan, Feb — the workpaper accumulates history). Confirm store-level amounts match RTI sales × 5% (royalty) and × 4% (ad fund).
Post the accrual using IMPORT_P5_Royalty_and_Ad_Fee.csv — GJ to acct 75600 (royalty expense) by store, DR Expense / CR 22400 or 22600.
Use IMPORT_P5_Adv_Var.csv and IMPORT_P5_Royalty_Var.csv to post variances between the initial accrual and the actual invoice once received.
When the invoice is received and the AP bill is posted, reverse the accrual — REVERSEDATE in the import = the period-start date of the next period.
Confirm accts 22400 and 22600 reflect only the current period accrual — prior periods should have been cleared by AP bills or reversals.
Files: IMPORT_P5_Royalty_and_Ad_Fee.csv · IMPORT_P5_Adv_Var.csv · IMPORT_P5_Royalty_Var.csv
Rates can vary by store. Most locations run at the standard rate, but a handful of legacy locations run at a different percentage — roughly half a percent above or below — and additional quarterly advertising initiatives have historically been layered on for some locations.
Watch specifically for new stores opening mid-period: they must be added to the sales/royalty worksheet, or their royalty and advertising accrual will simply be missing rather than flagged as an error.
Related
- Sales tax review — the marketplace-facilitator adjustment and the RCY prepayment nuance
- Royalty and advertising review
- NYC Commercial Rent Tax — the open multi-state tax question