FrontAccounting forum — Tax Group Problem

Re: Tax Group Problem

2010-04-08T02:07:17Z

Ahhhh.....relief! I assumed this option meant that tax needed to be included, but it really means that it's assuming that tax is already included in the price.

I adjusted that option, and re-created the delivery/sales order and it worked just like I need it to.

Thank you very much for your help!

Re: Tax Group Problem

2010-04-07T21:15:41Z

Well, when you have 'Tax included' set in your price list, the prices you entry are considered to contain taxes. So when you provide price 263$/item (tax included) your net price is net price 245.79 plus 17.21 tax (i.e just 7% from 245.79). And final total on invoice is also stated with tax included.

If you want to have tax added printed for every line on invoices you have to use price list with unchecked 'Tax included' option.

Janusz

Re: Tax Group Problem

2010-04-07T20:11:03Z

Itronics - thanks for your help. It's seems that what you are explaining is exactly what I've done.

I am in the US, where each state has it's own tax rate. So I set up 3 Tax Groups, call them Group A, Group B, and Group C (one for each state our customers are in), and one for Tax Exempt customers. Each of the 3 taxed groups only has one rate....the rate that applies to their state. So Group A is set up for Tax A at 6%, Group B is set up for Tax B at 6.5%, and Group C is set up for Tax C at 7%.

The customer in question is not tax exempt, therefore I selected the appropriate tax group (Group C) in the customer branches setup. Their state is at a 7% tax rate.

This is a "Direct Delivery" entry, but it seems to work the same if I try a Sales Order entry. The order has only one item at $263, and a quantity of 4. So the line item total shows $1,052.00, the sub-total shows $1,052.00, Shipping is $0. All good so far.

Then the tax line shows the tax group and $68.882 for the tax.....which is NOT 1052 x .07. It should be $73.64. The Amount Total line still shows $1,052....which I understand (from reading the many posts on this topic) could be showing the total "value" of the goods in the order....which would exclude tax.

The real problem is that once delivered and invoiced, the invoice shows $1,052 on the TOTAL INVOICE line...so nowhere does the customer know the actual total to pay..... which should be 1052 + 73.64 = $1,125.54

Thanks again for your help....believe me, I have tried figuring this out myself, but tax in this application is a fairly complex chain of included files and called methods on objects that are bounced around quite a bit in the code.

Re: Tax Group Problem

2010-04-06T21:19:09Z

This was explained a couple of times already.
You should create Tax Groups containing _all_ tax rates applicable to some group of customers. So if you have tax exempt (e.g. foreign) customers, no tax rate should be in one group, while another group should contain all rates applicable to domestic customers. The final tax rates selected on invoice are those, which exists both for item sold and customer. In other words set of tax rates used on invoice is intersection of Item Tax (depend on item) and Tax Group (depend on customer)
Janusz

Re: Tax Group Problem

2010-04-06T15:56:20Z

I too am confused about how to set up the tax functionality. We have some customers that are tax-exempt, and some that arent't. The ones that are taxed can be taxed at different rates.

So I:
set up 3 Tax Types - one for each rate
set up 4 Tax Groups - one exempt and once for each tax type
left the default Item Tax Type of Regular (non-exempt)
left the default Sales Types that include a Retail (tax included) and Tax Exempt
specified Retail for the taxed customer's Sales Type
specified the proper Tax Group for the customer branch

When a delivery note is created, it never shows tax in the total, and in the debtor_trans table, the ov_gst field is 0. If I manually populate that field, the tax shows up.

What am I missing?

(thanks in advance)

Re: Tax Group Problem

2010-03-29T13:32:30Z

You should also set Tax Group containing both tax types and apply it to your customer.
Janusz

Re: Tax Group Problem

2010-03-29T08:52:00Z

Can anyone explain how to use the system in my case;
I have certain items with 4% tax and certain Items with 12.5% tax...
I have set the tax groups and taxt item types correctly with the exact tax rates.
I checked in the setup and made sure the pricing does not include tax. And the tax has to be calculated seperately based on the type selected in the item configuration.
but when I try to do a direct invoice I cannot see taxes calculated. Its blank. though the item I selected has a 12.5% tax configured to it, it does not show any tax in the direct invoice!!

Re: Tax Group Problem

2010-02-24T10:55:55Z

Thanks!! Now it works.

BR,

Jarmo

Re: Tax Group Problem

2010-02-24T09:37:52Z

Hello again,
This problem has now been fixed. CVS Main trunk updated. Affected file: /taxes/tax_calc.inc.

You can download the file here:

/Joe

Re: Tax Group Problem

2010-02-23T13:53:56Z

Yes, I see there are some small rounding problems. We changed something here a while ago. I will investigate this.

Thanks.

/Joe

Re: Tax Group Problem

2010-02-23T13:04:19Z

This is related to Sales Type. If I change the parameter Tax included to No then it works. Taxes are calculated correctly and the account 4450 is not used.
Payment is Cash and currency is local currency USD and customer is Ghostbusters.

What is the file where the tax calculations are?

BR,

Jarmo

Re: Tax Group Problem

2010-02-23T12:27:48Z

Normally there are no problems with the tax system. But you must set it up correctly.
Is this a cash sale and are you using a foreign currency bank account for your pos sales?
If there are no tax exempt on the item tax type, the you should see all the taxes in your tax group.
A tax group of more tax types will always trigger all the types inside the tax group unless you put exempt on the items.

Please be more specific.
Thanks.

/Joe

Tax Group Problem

2010-02-23T11:41:31Z

Hello,

I have a problem with tax calculation when sales type has tax íncluded and tax group has more than one taxes and currency is home currency.

FA calculates too much tax and after I have placed the invoice and I'm checking the
GL Journal Entries I can see there is debit entry for account 4450 Foreign Exchange Gain.

My version is 2.2.6 and I have tested this in Training Co.

Where is this calculation done and is it correct?

Best Regards,

Jarmo Nurmela