• From: Nicaragua, Leon
  • Registered: 05/12/2012
  • Posts: 74

Topic: Profit before taxes

I am using the standard 4-digit COA for a US company (translated into Spanish and used here in Nicaragua). It is working pretty well. However, the tax authorities are complaining (rightly I think) that the Profit and Loss Report does not calculate the subtotal P&L before income tax, but only calculates and prints the P&L after income tax. As they say: tax is not a (deducible) cost.
I thought it could be solved in the config.php by setting $alternative_tax_include_on_docs = 1; but this does not change anything.
Have I done something wrong in the setup, and - more importantly - how can I get FA to calculate and print the subtotal P&L before income tax?:)

thorbjornw's Website

  • From: Nicaragua, Leon
  • Registered: 05/12/2012
  • Posts: 74

Re: Profit before taxes

I can see that the income tax account is set to account type "expenses", but it makes no sense to change it to "incomes", "assets" or "liabilities". So I guess the system understands it as "expenses".

thorbjornw's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Profit before taxes

Probably a footnote to state it so would appease the "authorities".

apmuthu's Website