• avb3
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  • From: Canada
  • Registered: 07/10/2009
  • Posts: 53

Topic: How to automatically show tax in addition to sale or purchase?

Here in Canada, we charge on all sales tax on revenues, and deduct the sales tax we pay on purchases before we remit to government.

It appears to me on testing that sales tax is in the price (at least the GL postings look that way), and I can't find a switch that would cause the tax to be added to the price rather than be included.

Am I missing something?

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: How to automatically show tax in addition to sale or purchase?

You set the tax included/excluded in the Sales Types in Sales tab.
First you create your tax types, then the tax groups and the item tax types.
And finally you decide how the tax should be handled in the Sales Types.
These Sales Types is set on the Customer. The tax groups is set on the branches.

I hope this info cleaed it a bit.

/Joe
BTW, we have several advanced users from Canada.

  • Registered: 12/25/2007
  • Posts: 2,448

Re: How to automatically show tax in addition to sale or purchase?

Keep in mind that on purchase side all prices are assumed to be exclude tax. As usually in B2B.
Janusz

4 Reply by avb3 (edited by avb3 02/14/2010 12:54:32 am)

  • avb3
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  • Registered: 07/10/2009
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Re: How to automatically show tax in addition to sale or purchase?

Joe, thanks, that should clear things up- I hope smile

Itronics, under GST in Canada, whether to consumer or B2B, we are required to charge GST, but also, we get an input credit for what we pay other suppliers.

As both of you are involved in the admin of this board (and I assume take part in the coding), I have found some challenges in understanding all of the fields in the various setups that are required, specifically understanding what affect it may have.

As a result, I have started documenting (for my own referral right now) what steps need to be taken, and what each field represents. The start of this project is here: http://forterecordstorage.com/docuwiki/dokuwiki-2009-12-25/doku.php

It would be a great help if you have a resource you could point me too that may already answer a lot of the questions as to what each field does. As example, I have searched the wiki and the forum, and can not find a reference to what the term "domicile" relates to in the Company Set Up screen.

As I am not a coder (my knowledge of PHP makes it dangerous for me to play with it), I can contribute to the project by helping with the documentation.

I have actually already set both of you up as editors, should you wish to correct or assist in this project. Once complete, perhaps it can become part of your documentation.

I hope I am not being presumptuous with this project? I just suspect that if I am puzzled by some of the flow, there are probably others, and this project may relieve you of answering some of those questions.

Joe, could you comment on some of the advanced users you may have here in Canada. I hope to be using this for a number of clients, and some present some challenges due to them requiring fund accounting capabilities and reporting thereof. I think your tags once fully implemented will do what is required. Mind you, I still need to wrap my head around exactly how to use 2 level dimensions, but that is a discussion for another day.

  • joe
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  • Posts: 5,107

Re: How to automatically show tax in addition to sale or purchase?

Hello,
I can just come up with 2 users, t2webby (Tu Nguyen) and fblaur (Fred Blaur). They are both from Canada.

We have a global wiki here, https://frontaccounting.com/fawiki. It would be smart to update this one instead of using private wikis. It is not complete yet, but it is our intension that when this wiki has majured we will make it downloadable.

You know that you can use this wiki for Help, by setting the url in config.php, right?

/Joe

  • avb3
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  • From: Canada
  • Registered: 07/10/2009
  • Posts: 53

Re: How to automatically show tax in addition to sale or purchase?

I was not aware until now that I could add to the FA wiki, and I absolutely agree it is better to expand on it.

If I find I can add things there, I will. I may still keep my own wiki for my own setups for clients, but it makes sense to contribute to what is already build.

Thanks for the comment about the config.php. I took a look at the FA wiki on what the various switches are.. great stuff, now I got to go play with them smile

  • alvin
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  • From: USA, Guatemala, Honduras
  • Registered: 05/20/2008
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Re: How to automatically show tax in addition to sale or purchase?

itronics wrote:

Keep in mind that on purchase side all prices are assumed to be exclude tax. As usually in B2B.
Janusz

This is a problem for me as well, almost all our suppliers from Central America include the tax in the price.  To get true product cost I must back out the tax, but when making a purchase order the the incorrect price is listed, and I must add back in the tax to get the price correct again. 

So we make a buy, back out the tax, and get credit for it when we pay our tax.

debit, cost of goods,
debit, tax payable, or other tax account
credit, cash on hand, or checking

it would be nice to handle this in purchasing.

"The roots of education are bitter, but the fruit is sweet."  - Aristotle.
  • Registered: 12/25/2007
  • Posts: 2,448

Re: How to automatically show tax in addition to sale or purchase?

To be understood right: the line price in purchase order currently is considered as excluding tax, but the taxes are always calculated during purchasing. Anyway I agree it would be nice to have possibility to select whether the purchase price include tax or not.

Janusz