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Re: booking taxes when invoice is paid

On 2010.02.21. 18:20, Chris Travers wrote:

You collect taxes from your customers on behalf of the government.  If
the customer never pays you don't have to pay the tax.  You only have
to pay after the customer pays.
Yes this is the case B for smaller companies after tax authority allows to do that.
Otherwise it is done in traditional way like it is handled in LedgerSMB now.
(This is an acceptable way of paying sales tax in my state iirc. but
most businesses I know just pay on an accrual basis).

I have a few questions before submitting a workaround:

1)  Is everything you do taxed at the same rate?
Yes it is at the same rate. I succesfuly used taxing features available in LedgerSMB for tax accoutning on accrual basis.
2)  If not, how are partially paid invoices handled?
3)  Is it permissible to calculate taxes collected on, say, a monthly
basis and transfer those from an accrual account once per month?
I don't think so, but I am not fully sure what you meant under "calculate on monly basis"
The tax amount should be calculated and booked when invoice is paid.
In the end of period the taxes received and paid is compared and so whe get an amount to "pay/receive" from tax authority.

Either way, it seems to me that one would have to track how much in
the way of taxes were owed as per when the invoice was sent.  Then
when the invoice is collected, the taxes collected would have to be
tracked.  Does this make sense?
Something like that. But I am not sure do we need in this case to track the tax when invoice was sent, but of course we need to show on invoice tax to be paid. My accountant offered the system when upon invoicing all amount (base+tax) is booked into "do not paid yet" acount.
When it is paid then all is moved accordingly.

(I am assuming that if the invoice is issued on one day and paid a
month later, and in the mean time the tax rate changes, the rate that
is valid is the one on the invoice.)

I don't think this would be too hard to shim into the system.
The first and simple idea is just use GL transactions and then just
repeat them, but then I am loosing Invoicing.

I would be interested in such customizations.

I have an idea:
It would be a possibility to define custom preset GL transactions and
soem reporting based on such custom transactions and also the
possibility to link them by some ID.
It then could be used for different tasks.
There is an addon for 1.3 that allows custom preset GL transactions
(and AR/AP transactions too) already
Then it seems I should upgrade to that. I did not yet time to do that.

The rest we would have to look at specifically according to your requirements.

Best Wishes,
Chris Travers