If I understand from your post #22, are you saying that the system automatically fails to calculate purchase VAT (from the same item sold) just to account for the Purchase tax reclaimable?

No. System calculate taxes according to your setup . If you select tax group which does not contain taxes, no tax will be calculated.

Please read the related wiki page to learn how the tax system works in FA. It works exactly the same for sales and purchases (despite the taxes are posted to credit or debit GL side). Taxes calculated depend both on item involved (by Item Tax Type) and customer/ssuplier (by Tax Group).

Janusz

Cos, I have a tax liability account named Sales tax to which the sales invoices entered credits the VAT element and further credits the net to the sales account.

On the other hand, I also have a current asset purchase tax account to which purchase tax is supposed to be debited and the net purchases figure further debited to the relevant purchases account.

The sales invoice aspect is done perfectly but the purchases aspect is not done because the purchase invoice tax is not calculated (though the field shows up in the form and appropriate tax group of 15% selected) in oder to post the tax element to the respective purchase tax account. I hope you understand my problem.

I'm very sure "tax group"  selected is not fully tax exempt, cos "exempt selected items do not show the tax field at all, but in my case, the fields are shown but just wouldn't  calculate.

Please throw more light on creating quick entries with tax exempt items. I might be better off using the quick entries for all my supplier invoices since I don't make use of POs now.

Thanks.

Janusz

When I enter a supplier invoice the tax field fails to calculate and remain zero. The sales field on the sales invoice calculates alright posting the VAT element into its sales tax liability account and that is really cool.

But the purchase tax is really a pain for me since I manually calculate the VAT and use journal entry to post the tax element into its relevant account.

I would deeply appreciate any help to fix this. I'm running on version 2.2.8

/Joe

Another thing is costs entered via GL lines on supplier invoice. Regardless of type of supplier, every individual GL line can have different nature. So even for tax exempt supplier the costs can have various tax rates related to every one GL line. If you do not want calculate it manually you should create quick journal entries for all tax schemes you wish to use.

The only constraint in purchasing is currently assumption that all suppliers us pricelists without VAT (this obviously does not mean they do not use tax, simply the tax is adde and not included). This constraint was here since the start of original system FA derives from, and unfortunately it wasn't removed so far. Originally the application was designed for b2b companies which usually use only prices stated without tax.

Finally I have to say that adding GL lines on purchase invoices was introduced to enable recording additional purchase costs. The best solution for 'non-core' purchases would be separated page with a little another ui structure, not needing selecting from predefined inventory list. FA still lack such a page, but adding manual change for tax rates in GL lines is in no way improvement. And in no case better solution than use of predefined quick journal entries.

Janusz

Still I would then like to know why I need to enter the VAT group for a supplier if it cannot be used for incoming supplier invoices? Where is it used?

It's true that various VAT rates are used. In the Netherlands we have also two rates. This is exactly the reason to keep more control on it. I would still love to see  the default calculated TAX value with a possibility to change. And if I may dream more... a checkmark to indicate whether the entered values are including or excluding tax as this will change the tax calculation.  I know an open source package doing this which I used to use since recently.

I noticed the quick entry. This still looks to fixed. I would really prefer to have a calculated VAT and a default purchase account. Simular to line item invoices, except then based on the supplier fields: VAT and Purchase Account.

Yes, quick entry is exactly for this kind of calculations. We cannot do it automatically on every GL line entered in purchase invoice just because different type of 'non-core' purchases can have various tax item rates. E.g. two different rates are used in most countries using VAT regulations.

Janusz

/Joe

However I was more thinking of the non-core activities, like a printshop invoice, or bank costs, or rental bills, or lunch receipt.

Then it would be great to select the printshop, enter the printshop invoice number and total amount, then let FrontAccounting calculate the VAT and prompt with the default account for this printshop (something like 'promotion costs').

I noticed the quick entry. This still looks to fixed. I would really prefer to have a calculated VAT and a default purchase account. Simular to line item invoices, except then based on the supplier fields: VAT and Purchase Account.

/Joe

When I get an incomming invoice for let's say a Prinshop I do enter it as a supplier with the VAT group and the Purchase Account.  Then I enter the Supplier Invoice form and it doesn't take over the defaults for the Purchase Account, neither the VAT account.  So now I have to remember the purchase account myself and add an extra line with the VAT amount. This decreases efficiency and increases human typo mistakes.

I would really appreciate if the values in the supplier record can be used as the defaults for the supplier invoice to set the VAT and the purchase account.

/Joe

From what you have shown me I think FA does suite our purposes; that of a simple, web based mySQL double entry accounts package.   I have taken the plunge and started entering cleanly this financial year.  We are going to have to be creative with mapping our (currently excel based) accounts to the way FA does things, but from our research so far this seems to be true for any package.

Well done with what you have achieved so far and keep up the good work.  I'm no PHP programmer, but I'd be happy to do what I can to help, if only beta test.

What is the timeline for 2.2?

I looked on the sourceforge CVS and I don't see a branch for the 2.2 development, is it available?