Does anyone else fear updating manager as much as I do?

[lubos]

@d3mad

(I’m not going to articulate this well, apologies in advance, and this one is probably my error, but) Applying tax in/on line items that are capital accounts > personal contributions > drawings… I probably shouldn’t have allocated a tax code on these lines, this was in error, but with a tax code applied, it is treated differently between manager versions. Even though the payment is entered “tax inclusive”, the reported entries under capital accounts is different. One is in total regardless of tax code, the other is after removing the tax value. (Again, I realise there shouldn’t be a tax value on this particular entry, but there is and manager is treating it differently between versions).

In previous versions, if you’ve used tax code on capital accounts, the tax code would be ignored and the tax amount would simply be put into capital account as well.

For example, here is one of the topics discussing the issue:

Capital sub account tax code

I think there is a bug when using tax codes and capital sub accounts. Using v19.7.24 desktop on Windows 7. An example I would like to use Journal entry from “Retained earnings” to “Capital Accounts” → “Member 1” → “Share of profit” - tax code Changing the tax code makes no difference. 100% funds are transferred to “Share of profit”, none going to any tax code directed account. An example showing an issue but I don’t think I need to use currently “Receipts & Payments” → “New Receipt” …

This has been fixed which means if you use tax code on capital account transactions, tax amount will be put into tax account.

For example, you have put GST 10% tax code on your drawings. That’s incorrect.

As per Simpler BAS GST bookkeeping guide | Australian Taxation Office

For the proportion of private expense not related to your business, GST credits are not claimable.

The previous versions of Manager were guilty of trying to quietly “save users” when they’ve done something incorrect. Newer versions are making it more obvious when something is done incorrectly.

In your case, generate Tax Audit report for the entire history of your business and check how much GST is being allocated to Capital Accounts account. You probably shouldn’t have any GST allocated to this account. So fix these capital accounts entries by removing GST tax code - especially from drawings as these transactions are not GST reportable and thus should have no tax code selected.