Custom tax components and their reporting

Maybe I missed a release announcement, but I can’t find anything about this topic on the forum.

The development of segregated reporting for multiple components of custom tax codes has disappeared from the Roadmap, implying that @lubos considered the matter closed . Under Settings >> Tax Codes, individual custom tax code components now show an Account field. The gray, default entry in that field is Tax liability, suggesting that Tax liability is a control account. But the default control account when I set up my chart of accounts was Tax payable, which still shows in gray text as such below my renamed account title. If I create a new custom tax code, the default assigned account is now Tax liability. But I have no such account.

The only other choice available in the Account dropdown box is Accounts payable. Meanwhile, tax liabilities for both previously created and new custom tax codes continue to be assigned to the original, default Tax payable account and cannot be segregated for reporting purposes. That continues to be a problem, because I collect four different sales taxes payable to four different taxing authorities on four different schedules.

So, several questions:

  1. What happened to the control account Tax payable? Is it now Tax liability? If so, why does the new name not appear as the default in the chart of accounts?

  2. What is the new plan for segregated reporting of custom tax code components?

  3. Why can I not select Tax payable as the assigned account for a custom tax component? Why, of all my liability accounts, can I only select Accounts payable?

  4. Is this somehow tied up in ongoing development of custom control accounts? Will any of this confusion be resolved as custom control accounts continue to be rolled out?

  1. You are right. Placeholder should say Tax payable, not Tax liability. It should be fixed now. Tax amounts are posted to Tax liability account if custom account is not selected.
  2. I will have to think about this
  3. You can only select balance sheet account which is not a control account.
  4. Pretty much this.

I do not understand. The only account besides Tax payable (as recently fixed) that I can select is Accounts payable, which is a control account. Yet other control accounts (Expense claims, Customer credits, and a custom control account for credit cards, to say nothing of any asset accounts) cannot be selected.

Are you sure Accounts payable is a control account in your file? Can you go to your Chart of Accounts, click Edit button on Accounts payable and show screenshot of the form?

My mistake, apparently. The edit screen shows a control account box, which is not checked. Of course, when I first set up my chart of accounts, this was not even an option. I thought it was a control account because it:

  • Appeared automatically as various tabs were first enabled,
  • Had a title which persisted in gray even after renaming, and
  • Included subaccounts.

But I think I know what happened. After creating my original chart of accounts, I realized I was unlikely to have a use for Purchase Invoices beyond my initial experimenting (all of which was deleted) and disabled that tab. I can no longer recall, but my Accounts payable account would have vanished when I did that. Not knowing much about Manager’s inner workings at that early date, I probably recreated an Accounts payable account as an ordinary liability account, just to match my planned chart of accounts. It has never been involved in any transactions. So what I thought all along was a control account hasn’t been. :blush:

So my confusion over your statement that only non-control accounts could be selected is resolved.

I’m still trying to nail down how to manage the setup of custom control accounts. It’s getting a bit complicated so it’s easy to get confused.