Re: Tax Inquiry - Does not show output tax info

@itronics

Thanks for your explanation which really helps to define what is and what isn't a bug in these reports.

I think that if only the third assumption is mistaken, then perhaps I could add a check box that could add in deposits or payments.    With this box checked, then it is easy to reconcile the report/inquiry with G/L inquiry of a given tax account, since the balances should then match (except if tax register is not checked in case 4). 

I do believe that the current 2.4.4 reports have bugs based on assumptions 1,2, an 4.   I will wait until boxygen reports the results of his investigation and then open a bug report and offer my code as a possible solution.

Re: Tax Inquiry - Does not show output tax info

Hello All,

I have tested on the latest repo without any customization suggested by @BraatWate.

My findings are that I can't find any bug related to #1 and #2.

Here is the screenshot.

You can also login to verify at

pakerp.net/fa242org
id: admin
pass: Pakistan1947

I can see both Inquiry and Report is showing the same results. And Input Tax is also included in both.

Regarding #3 I agree with @itronics but adding a check box is a good option.

I didn't test #4.

www.boxygen.pk

Re: Tax Inquiry - Does not show output tax info

@boxygen

Thanks for setting up the testing for this.

The bug arises only when adding g/l tax accounts to a supplier invoice, otherwise all seems to work correctly.   Then the totals do not match and the tax report shows a double entry.   I reproduced this on your testsite with supplier invoice reference "abcde".

#4 is a separate issue and results in different totals, because as I recall, the inquiry adds the journal amount to both input and output and the report adds it just once.

Re: Tax Inquiry - Does not show output tax info

@BraathWate, Now I could catch the bug. It appears only when Sales Tax Account is added as GL Line Item. It is duplicating the row in the rep709, hence the input tax value is incremented.

Apart from this that it is a Bug, I am unable to understand that why one needs to enter Sales Tax Account in the GL Line Item. When Sales Tax is Auto Applied to the Item being invoiced then why to enter Sales Tax Account in GL Line Item?

However, since we can't stop any one to select this Account (for any given reason) so this bug needs to be Fixed.

www.boxygen.pk

Re: Tax Inquiry - Does not show output tax info

Hello guys,

Adding config.php option for including Bank transactions is good idea (please, set it off by default). Probably due to time constraints suffering me recently I was not fortunate enough to reproduce the other problems, but I believe you they really exists. Please allow me only make final review on the code you are working on, then I will push proposed changes to the code repo. Thank you all for the time spent on this bugfix.

Janusz

Re: Tax Inquiry - Does not show output tax info

Instead of config.php, better option is to add in company_preferences.php I guess.

www.boxygen.pk

Re: Tax Inquiry - Does not show output tax info

My vote is to add a yes/no option to the tax report and a checkbox to the inquiry where the default is not checked.   Most people do not think to look at configuration or preferences or do not have access.  Or they might need to prepare the report both ways from time to time.

Re: Tax Inquiry - Does not show output tax info

Hi,

Frankly I see no reason to put the option in printing parameters: this report is either used as designed (only for taxable transactions) or for current tax balance review, so for most users the option will be selected once during app configuration. As current tax duties can always be found in chart of accounts balances, I would prefer simply adding the option in config.php (here is the place for all usage specific and less usaed options), but I would accept also placing it in company preferences. Maybe we should ask Joe opinion?
Janusz

Re: Tax Inquiry - Does not show output tax info

Hello Guys,

I would say that this is rather region specific so I suggest following a global setting like the one selected by Janusz.
We simply put the setting in config.php. That is my opinion.

Joe

Re: Tax Inquiry - Does not show output tax info

@braathwaate's suggestion seems nice especially for those who have no access to config.php - just form request fields for the report.

Re: Tax Inquiry - Does not show output tax info

config.php would be useful if one FA instance is used for one Company only. Since FA has the power to operate multiple companies with one instance, putting in config.php will contradict with each other may be.

www.boxygen.pk

87 (edited by seahawk 02/28/2019 07:23:08 am)

Re: Tax Inquiry - Does not show output tax info

Braath Waate wrote:

@seahawk


If you were using my version, and the report showed a bank payment or journal with the bottom memo, was the person a quick entry or a supplier, customer, or miscellaneous name?

yes it was your version on 2.4.6. Was bank cost - payment via Banking and General - Quick Bank Payments

Wynand

88 (edited by seahawk 02/28/2019 07:52:13 am)

Re: Tax Inquiry - Does not show output tax info

itronics wrote:

@Braath  Waate

Summarizing, third of your assumption is not valid. But if there is any scenario when assumptions  1,2, or 4 seems still not work, we have  aug which should be fixed.

J.

Number 3 is also important, since the Bank Account is technically a supplier of service to you, and you pay VAT on Bank transaction Costs, Aditional serves, and Bank Account fees and any other fees that the bank would charge. These services carry service Input Tax that needs to be part of the claim back against your invoice, Supplier and Customer Credit Notes VAT payble.

Part of payments through the bank account might be cash transaction with till slips wher some amounts are VAT claimable. These are normally done through the Cash Payment or Petty Cash Paymnts, since you are not setting up a supplier account for every shop where you are going to buy stuff for the business, but they do issue a Cash Till VAT Receipt (Invoice).

Must I now setup the Bank as a supplier, Issue Supplier Invoices for each line item that is Vatable on the bank statement, and then make a supplier payment. This is tons of extra work that is not neeeded.

When you write Customer payments off as bad debt, you cannot use the Customer Credit Note so that you can claim back the VAT. I created a Bad Debt recon Account as a "Bank Account" so that the process against a Customer with bad debt is easier, but under 2.4 that did not pull through to the Tax report.

If in other areas they d not use GL accounts or Banking and General Journa to write back VAT, then they will have no such line transaction. It should only display where youve the folliwng:

Bank Cost: $2.00
Vat:  $0.20

Then this transaction will be displayed in the tax report as INPUT VAT. this is not happening with the current 2.4 reports, but was displaying in the 2.3 report709. So something clearly changed between 2.4 and 2.3 report709.

@Braath changes did address this issue in report709.

I did not specifically noticed the problem in the beginnig but had to resubmit the bank cost and cash payments in the Petty Cash after noticing the issue.

Trust this will help.

W

Wynand

Re: Tax Inquiry - Does not show output tax info

seahawk wrote:

Number 3 is also important, since the Bank Account is technically a supplier of service to you, and you pay VAT on Bank transaction Costs, Aditional serves, and Bank Account fees and any other fees that the bank would charge. These services carry service Input Tax that needs to be part of the claim back against your invoice, Supplier and Customer Credit Notes VAT payble.

Currently only sales/purchase invoices and credit notes are supported as taxable transaction in FA, other operations like bank transaction or GRN/sales delivery are not directly taxable, so they are not included in tax report. This has not changed since 2.3 version. For every other business operation which is subject to VAT we can use low level Journal Entry. This is also the case for taxable bank operations.

Regarding till slips, there is no direct support in FA for this type of sales, but there are two workflows which could be used here. First, you can use generic 'retail customer', and register all such transactions as Customer Delivery documents for this generic customer. Then once a day you can make Batch Invoice against those deliveries, which would appear in Tax Report as expected. This workflow is suitable if you want to track all your sales correctly on the stock level. Second method is just entering your daily sales summary report using Journal Entry page, with 'Include in tax register' option enabled.

Must I now setup the Bank as a supplier, Issue Supplier Invoices for each line item that is Vatable on the bank statement, and then make a supplier payment. This is tons of extra work that is not neeeded.

I understand the problem, but bank transactions are not considered taxable at the moment.  I guess basic bank fees are tax exempt in many countries, or at least this is the case here in EU. Anyway, if this is real problem suffering FA users, we should consider some mechanism to handle this. I'm open for any prepositions how to implement it in FA.

When you write Customer payments off as bad debt, you cannot use the Customer Credit Note so that you can claim back the VAT. I created a Bad Debt recon Account as a "Bank Account" so that the process against a Customer with bad debt is easier, but under 2.4 that did not pull through to the Tax report.

I agree Credit Note is not right for this process. Currently bad debt  should be moved to separate account using taxable Journal Entry, then it will appear in tax report too.

For now short term solution is to allow Bank Transactions be included in tax report, but due to reasons explained in previous post, we can implement this as an option selected either in config.php or company preferences (and not as general fix).

J.

Re: Tax Inquiry - Does not show output tax info

I made a pull request on github FrontAccountingERP:master with my original code changes plus the addition of a company preferences option.

Re: Tax Inquiry - Does not show output tax info

Hi,

I receive the below when installing the pull request:

Undefined index: tax_bank_payments in file:\admin\company_preferences.php at line 217.

Did I miss something?

Re: Tax Inquiry - Does not show output tax info

The pull request requires an addition to the sys_prefs table and there is no built-in 2.4 minor release upgrade.   You will need to login to the mysql client and make the addition manually.

INSERT INTO `0_sys_prefs` VALUES ('tax_bank_payments','setup.company', 'tinyint', 1, '0');

Re: Tax Inquiry - Does not show output tax info

Yes the above did it. The pull request is working properly.

Re: Tax Inquiry - Does not show output tax info

Good evening gents,

I kind of stepped out of the conversation as it got me completely bamboozled.
Looks to me that my CoA was not the (only) problem. But I'm pretty lost where we are now. Can I update again from v3x to v4x and safely carry on with my bookkeeping?

Re: Tax Inquiry - Does not show output tax info

itronics wrote: Regarding till slips, there is no direct support in FA for this type of sales, but there are two workflows which could be used here. First, you can use generic 'retail customer', and register all such transactions as Customer Delivery documents for this generic customer. Then once a day you can make Batch Invoice against those deliveries, which would appear in Tax Report as expected. This workflow is suitable if you want to track all your sales correctly on the stock level. Second method is just entering your daily sales summary report using Journal Entry page, with 'Include in tax register' option enabled.

This solutions is time consuming and not needed. In the bank account payment line items you can setup quick entry with two line for bank cost, 1 vir Account fees and next line for INPUT VAT. If the report then do not read the payments in the banking, the client cannot claim the VAT. If the EU does not charge VAT then the VAT in the bank account would be 0.

It seems the only solution is to revert back to 2.3.26. To many reports have changed from 2.3 to 2.4 and is not delievering the same results as under 2.3.

Other reports are the delivery reports. No LIne to sign. (I will search elsewhere if there is a solution).

Another problem that I will address elsewhere is the deactivation or closure of a  Customer branch, unless I miss the option. I a customer has three branches, their is no way to close the one an retain the other three. In 2.3 we had that option. Do not know if this is a bug that needs to be reported in Mantis.

It seems that the changes brings more and more challenges and everything is going in circles.

This is costing my clients time and money, and in dealing with the complaints is another challenge. I value all the work that everyone is doing.  It is highly appreciated.

Wynand

Re: Tax Inquiry - Does not show output tax info

Following @rafat's suggestion in this thread http://frontaccounting.com/punbb/viewtopic.php?id=6975 I worked through this thread to try an resolve the issue by implementing the pull request from @BraathWaate but could not get it to work (ended up with a blank screen when trying to logon so I reverted to the old files).

I ended up only keeping the tax report (rep709) that seems mostly fine for my reporting requirements, except for:
- The absence of the bank payments/deposits to the gl tax accounts (as discussed in this thread)
- And a bug I think, because whereas the report does show the supplier invoice credit note item, it is not taking the value into account when calculating the report totals.

Thanks for all your hard work, but I must say it seems like the update to 2.4 caused a lot of issues in the tax reporting that need to be fixed. Is there any more progress on this?

Re: Tax Inquiry - Does not show output tax info

@ml3698 You are correct regarding the Supplier Invoice Credit note.
As for the pull request install ..it was straight forward for me. The only only thing i needed i to use phpmyadmin to insert a record in the db as stated above. Maybe you can take a look at the error log to find out whats going on.

Re: Tax Inquiry - Does not show output tax info

@rafat thanks for the suggestion; if I have a chance I'll have another crack at it.

As for the supplier invoice credit note, I have modified line #162 in rep709 from @BraathWaate (I added "ST_SUPPCREDIT,") which seems to have done the trick as my report is now looking good and matches my .xls wink, but I haven't done extensive testing.

If anybody would like to test it, the line now reads:

        } elseif ($trans['reg_type'] !== NULL || in_array($trans['trans_type'], array(ST_SUPPINVOICE, ST_SUPPCREDIT, ST_BANKPAYMENT))) {

Re: Tax Inquiry - Does not show output tax info

@ml3698: thanks!

I updated the pull request to include this change.

Re: Tax Inquiry - Does not show output tax info

@joe

You should include this pull request in Release 2.5.