1 (edited by hernanjls 11/29/2013 01:05:05 am)

Topic: Tax problem for implement FrontAccounting in my country

Hi

I am new in FrontAccounting and I am try to implement this system in my country

We have the tax requirements for sales in this way here

For sales we have two tax

IVA = 13%
IT = 3%

I have created in setup for taxes, an group called "Imp S/sales" that include this two taxes
Also I have created in setup "Item Tax Types" one type called "regular" which is not tax exempt, this type is set for all items in the inventory (the field "Item Tax Type:" is set to "regular")

Also a have created "in Sales>sale types" an type called "Incluye IT e IVA" (for IVA and IT are include) this have the "Tax included:" cheched

In "Sales>Add and Manage Customers" for all customers the field "Sales Type/Price List:" is set to "Incluye IT e IVA"

in "Sales>Customer Branches" associated for the customers the field "Tax Group:" is set to "Imp S/sales"


the problem is that when I am filling an Direct Invoice in  "Sales>Direct Invoice"
after the select an customer and select the items for sale I have wrong values for the taxes showing

For example


For an Item called "Mensualidad Gastronomia" this has the price in 100, as the tax is included the detail of the tax sale should be as follows

(This is the rigth result)

Description item                Quantity        Price with tax included?    Total       
-------------------------------------------------------------------------------------------------------
Mensualidad Gastronomia    1        100.00                         100.00

Sub-total                   100.00   
Included IT    (3%)      3.00       
Included IVA  (13%)  13.00
       
Importe Total            100.00


But FrontAccounting is doin other things like this

Description item                Quantity        Price with tax included?    Total       
-------------------------------------------------------------------------------------------------------
Mensualidad Gastronomia    1        100.00                         100.00

Sub-total                   100.00   
Included IT    (3%)      2.59       
Included IVA  (13%)  11.21
       
Importe Total            100.00



Also the "Journal Entries for this Invoice" is generating this wrong results for my balance

The system is generating this WRONG results in the Journal entries

Account                    Name of Account                     Dimensión    Debit         Credit
--------------------------------------------------------------------------------------------------------
4.1.01.01.001          Mensualidades Gastronomia                                             86.20
1.1.02.01.1000        client CXC                                                    100.00         
2.1.01.04.002          IT   (3%)                                                                      2.59
2.1.01.04.003          IVA (13%)                                                                   11.21
---------------------------------------------------------------------------------------------------------
Total                                                                                      100.00         100.00


I need this results in the Journal entries (this is the right for me accounting)

Account                    Name of Account                     Dimensión    Debit         Credit
--------------------------------------------------------------------------------------------------------
4.1.01.01.001          Mensualidades Gastronomia                                             84.00
1.1.02.01.1000        client CXC                                                    100.00         
2.1.01.04.002          IT   (3%)                                                                      3.00
2.1.01.04.003          IVA (13%)                                                                   13.00
---------------------------------------------------------------------------------------------------------
Total                                                                                      100.00         100.00




Please this is urgent to resolve, what is bad in my configuration?

Re: Tax problem for implement FrontAccounting in my country

hope this helps. (I have no experience applying tax system)

it seems like the system calculates the tax value from the item price.
so,
3% from 86.20 is 2.59, and
13% from 86.20 is 11.21.
if we sum all price and taxes, then we get 100.

I guess the system calculate the price (86.20) by dividing total (100) with (100%+3%+16%)

3 (edited by apmuthu 11/29/2013 04:05:23 pm)

Re: Tax problem for implement FrontAccounting in my country

These are what we refer to as price inclusive of taxes and these taxes are non cascading (levied on the same base amount). If you make one tax as (IT+IVA) as 16% and make it as tax inclusive on price, then when you enter 100 as the price, automatically it would split it up into 86.21+13.79=100 where 13.79 will be the 16% of the base value of 86.21. I do not recollect offhand if two such taxes on the same base amount for a single product is available in FA - possibly so - Joe/Janusz?

Re: Tax problem for implement FrontAccounting in my country

If taxes are included in the amount of 100 and the percents are 3 and 13 you can never calculate it this way.

The item price is 100 and the taxes are included. You cannot calculate 3 and 13 percent of this value. This will be wrong.

Please talk to a local accountant.

FA handles this correctly.

/Joe

Re: Tax problem for implement FrontAccounting in my country

I am trying use Front Accounting in hte U.Sl in Virginia. The problem I have is that it wants to show tax included. In Virginia itmes have prices and the tax is added to the price at invoice time provideing that itme and cusatomer are taxible.

My problem is that it keeps showing the tax included instead of adding the tax to the price..

PLEASE HELP!!

Re: Tax problem for implement FrontAccounting in my country

Hi ,

you see Item& Inventory menu . add item Exclude from sales:   

if you problem has solve then well . other please details information please try to solve.
thanks

Re: Tax problem for implement FrontAccounting in my country

Could someone please enlighten us on how to configure the taxes or items so the taxes are not included in the price of the item?  I really like this package but the taxes are driving me bonkers.

Thank you

Re: Tax problem for implement FrontAccounting in my country

nke wrote:

Could someone please enlighten us on how to configure the taxes or items so the taxes are not included in the price of the item?  I really like this package but the taxes are driving me bonkers.

Sorry for the RTFM fail here.  If anyone else runs across this go to Sales -> Sales Types, this is where the tax included is set and I was only looking at the tax items.