FrontAccounting forum — quick entries question

Re: quick entries question

2015-08-26T16:24:45Z

Thanks apmuthu. As always you are my man!;)

Joe

Re: quick entries question

2015-08-26T15:18:22Z

Wiki-ed it under Workarounds in the Quick Entries page.

Re: quick entries question

2015-08-25T20:48:56Z

Thanks LindPrKr!

You are right. This is a classical example. You have an amount where tax is included. How many percent to reduce to get the correct tax value. Maybe a good idea to put this on the Wiki.
@apmuthu, will you please?

Joe

Re: quick entries question

2015-08-25T19:49:55Z

This is a classic issue with calculations using percents. The very first thing to work out and be very clear on is "PERCENT OF WHAT?"

The results that apmuthu is getting are because he is using the percent values that apply to the $100 base amount to calculate a result from the TOTAL amount. In short: if the journal entries are calculated on the total amount, he needs to adjust the percentages to apply to the total amount of $108.25.

Here's how it's done:

We know that we expect $3.50 in sales tax from every $108.25 invoiced. Therefore...
Sales Tax: $3.50/$108.25 = 3.0023% THIS IS THE PERCENT TO APPLY TO THE TOTAL TO GET 3.5% of the base.

3.5% of $100 = 3.0023% of $108.25

Similarly...

Service Charge: $5.00/$108.25 = 4.6189%

So that $108.25 * 4.6189% = $5.00

You can see that this is nothing more than a simple algebra problem where the equation is $100 * 5% = $108.25 * X
Solving for X gives:
X = ($100 * 5%) / $108.25
X = $5/$108.25
X = .041689 [4.17%]

Never underestimate the importance of good math skills. If you need a refresher or rehabilitation, do as many lessons at KhanAcademy.org as you can or need to.

Good Revenue to You!
-Leland

Re: quick entries question

2015-06-06T01:45:11Z

@joe: nice one to correct or add on with a flag in the config for such base value calculations.

quick entries question

2015-05-29T21:33:54Z

Hi,

I am trying to make a quick entry for a journal entry with a percentage calculation, but it's not calculating the values I want.

By way of example, in the journal entry, I want to credit one account for 108.25. the corresponding debits should be 5.00 for tax, 3.25 for service fees, and 100.00 goes into an asset account.

I set up a quick journal entry and added the following quick entry lines:

1. % amount of base, reduce base: 3.25%
2. Taxes included, reduce base: choose GST(5%)
3. remainder: into my asset account

Now when I go to make a journal entry, enter 108.25 into the quick entry line and press go, I get:

3.52 for service fees
4.99 for tax
99.74 into the asset account

or if I swap the percentage and tax lines:

5.15 for tax
3.35 for service fees
99.75 into the asset account

It seems the tax is calculated from the remainder value, but the percentage is not. Is there a way to get it to work like I want, preferably without putting in a dummy tax account?