Provision
Definition
Provisions refer to financial liabilities with uncertain amounts or due dates. In accounting, they are used to cover expected costs in the current business year, e.g., expected tax payments, warranty measures, repairs, or legal proceedings. In TRASER DMS 365, provisions can be created based on invoice amounts. Once the liability has been fulfilled, the remaining provision is reversed.
CAUTION!
The preceding instruction does not contain information on the applicable tax laws.
For more information on provisions, please seek advice from your tax consultant/auditor.