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).
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