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It seams that there is a problem when entering Supplier Credit not, if the supplier has Tax included in the prices.
Example:
Enter a supplier invoice (for a new product) who has tax included in the price, in stock_moves table price and standard_cost gets registered at the same price, both without TAX
Enter a supplier credit note for the above product (same price with tax, same supplier), the in stock_moves table price gets registered WITH TAX included, and standard_cost gets registered without TAX (it dose not change)
So as a result, the standard cost for the item will be ok, but the Inventory Valuation for the item will not be correct
So you suggest that I should create Profit and Loss Year Account that is not part of the Official Romanian COA and set that "unofficial" account as Profit and Loss Year Account for FA.
The thing is that in this case I do net see the reason for FA Profit and Loss Year Account functionality because the official Profit and Loss account, that has to be updated manually at the end of each mount (this is a legal requirement) will be same in the end of the year as the "unofficial", so practically the software dose not help in this calculation. It can be used just for double checking at the end of the year that the manual calculations are correct or not.
Hi, Thanks for the indication. I did read this section before, but then I did not understand much of it. Now I read it again and I begin to understand it, though it is still kind of foggy. This is probably due to the fact that one month ago I had no knowledge whatsoever about accounting.
What is not exactly clear is Point 7. of Using the Tax System. Perhaps a bit more detail about this would be useful. Also note that here in Romania we use two independent Accrued Account for Tax. One for payable tax and one for collectable Tax....and one of them is always zero (do not ask why is like that).
Regarding automation:
I think it is possible to make a half automatic solution. FA just has to know what is the Accrued Account(s) for Tax. And based on a function (button) "Close TAX for month" it could make the transfer that you make manually at Point 7 of Using the Tax System. I say that this simple thing would be a significant improvement, specially for beginners such as myself.
Thanks for the clarification regarding error message.
Regarding the Profit & Loss account:
Please confirm that in the rest of the world (and In FA) Profit & Loss account is Credit income, and debit expenses at the end of each mount, or only in the end of the Fiscal year.
Also if you have time, please take a lock at the Romaiam COA setup that is available in FA. It might happen that this setup is not correct. due to the fact that both Retained Earnings (117) and Profit and Loss Year (121) are configured as Balanced accounts
Ok, So then the error message should be with AND, not OR (Or I still do not understand something right):
"The Retained Earnings Account should be a Balance Account AND the Profit and Loss Year Account should be an Expense Account (preferred the last one in the Expense Class)"
Regarding the accounting part (I am only starting to learn this part):
Here in Romania, at the end of each mount all income is entered to Profit & Loss (121) as Credit, and all Expense is entered to Profit & Loss (121) as Debit. Is this the same in the rest of the world? Or it is done differently?
Can FA do this automatically at the end of each mount, or is it intended to be done manually?
Hi. Any update on this subject?
More exactly, I use FA 2.4.8 and inserting in to the tax register "works", but I still do not understand what is the purpose of it.
But that is not my primary problem. My problem is that I do not know how can the tax register be balanced. More exactly: What am I suppose to do when I pay the tax? How should the tax be payed? Normally I would enter a bank payment when paying the taxes, but that dose not influence the tax register.
I am on the wrong track, and I know it. :-(
My workaround is a dirty hack that might backfire....but I will make a db backup before closing the year. As I understand these accounts are only used when closing the year. Or am I wrong?
As I pointed out in the original post, I do not know what is correct:
a: <Retained Earnings Account must be Balance Account> OR <Profit and Loss Year Account must be Expense Account>
b: <Retained Earnings Account must be Balance Account> AND <Profit and Loss Year Account must be Expense Account>
Further more, as best of my understanding, in the Romanian COA both Retained Earnings and Profit and Loss Year is Balance Account. More exactly is class 1 (Equity)......but I might be wrong.
Here is a multi-language document with the Romanian COA (this is identical with what is in FA)
https://assets.kpmg/content/dam/kpmg/ro/pdf/plan-de-conturi-2016-web.pdf
As I understand:
Retained Earnings is 117 ....?
Profit and Loss Year is 121 ....?
Hi,
Please note that my post refers to a software condition that is in conflict with the associated error message, and not the workaround for the problem.
Meanwhile I managed to make the workaround, but only after digging in the code.
Hi.
I am from Romania and I am trying to set up the General GL, but I have no knowledge of accounting, so I am trying to figure out how it should be configured.
I am trying to set up Retained Earnings and Profit/Loss Year accounts but I keep getting the error
"The Retained Earnings Account should be a Balance Account or the Profit and Loss Year Account should be an Expense Account (preferred the last one in the Expense Class)"
I cheeked the code and the condition for this error is
if (!is_account_balancesheet(get_post('retained_earnings_act')) || is_account_balancesheet(get_post('profit_loss_year_act')))
As best of my understanding, the condition and the error message are in opposition. The problem is that I do not know what is correct? Is the error message correct (condition should be &&) or is the condition correct (error text should be with AND instead of OR)
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