FrontAccounting forum — Tax setup for 2 different taxes on the same item for same supplier

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (carmelr) — Wed, 10 Feb 2016 05:47:29 +0000

admin@anvationlabs.com wrote:

Agree. It's a similar issue. Looks like the solution you suggested is not implemented yet.
I have found another workaround though. Let both the taxes fall in the same group and same type. That means when creating a PO both taxes will apply. Just add a note in the memo that only one will be used on invoicing.
When the items are received and invoiced, the tax amounts are editable - so make the one which is not applicable 0. That way there are no duplicate items or vendors and the taxes also reflect the right amount.

That works only when you have one item, or when all the items will be charged the same VAT.

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (admin@anvationlabs.com) — Sat, 06 Feb 2016 19:02:40 +0000

Agree. It's a similar issue. Looks like the solution you suggested is not implemented yet.

I have found another workaround though. Let both the taxes fall in the same group and same type. That means when creating a PO both taxes will apply. Just add a note in the memo that only one will be used on invoicing.
When the items are received and invoiced, the tax amounts are editable - so make the one which is not applicable 0. That way there are no duplicate items or vendors and the taxes also reflect the right amount.

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (carmelr) — Sat, 06 Feb 2016 18:44:34 +0000

This is a similar problem that I have posted about in the other link.
https://frontaccounting.com/punbb/viewtopic.php?id=6067

And the solution IMHO is to simply create a additional column that would allow you to select the proper VAT/CST code for that entry.
I reason that when an item is brought from the database table, the tax code is retrieved as well, so if the tax code is modified while the entry is captured then the rest of the process can continue as usual.

Carmelo

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (admin@anvationlabs.com) — Sat, 06 Feb 2016 11:34:25 +0000

Let me state the problem again.
How do I apply a tax of 14.5% OR 2% on Item 'x' from Vendor 'a' without having to create two separate items or two different vendors?
Please note at a time only one of the tax will apply.

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (apmuthu) — Sat, 06 Feb 2016 10:45:51 +0000

Consolidate them into a single tax, like 5% and 2% can be (1.05*1.02 - 1)*100 %.

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (admin@anvationlabs.com) — Tue, 02 Feb 2016 11:27:30 +0000

I don't think that will work until you can assign two tax groups to the same supplier. Take a note of what is required below:
For the same item and same supplier we can have 2 different taxes applied - how to handle this in FA ?

Re: Tax setup for 2 different taxes on the same item for same supplier

null@example.com (itronics) — Tue, 02 Feb 2016 10:59:07 +0000

I guess you should create two Tax Groups, one for VAT suppliers and another one for CST suppliers. Tax setup for the groups should contain only one of the two taxes respectively. Then you should create Item Tax Type which contains both the tax types, and use it for PCB inventory item. Now, the effective tax used will be defined by buyer's tax group.

Janusz

Tax setup for 2 different taxes on the same item for same supplier

null@example.com (admin@anvationlabs.com) — Tue, 02 Feb 2016 09:11:14 +0000

This is a practical scenario we have to handle. In India when we buy an item from a supplier the tax he applies can be VAT of that state or CST of 2% depending on whether we submit a certain document to him or not. So as an example if we buy a PCB from somebody in Karnataka he will normally charge 14.5% VAT but if we produce a document (C-Form) then he will charge only 2%. Typically the document is produced only for large purchases.

This means for the same item and same supplier we can have 2 different taxes applied - how to handle this in FA ?

If this is not possible then has somebody worked around this ?