Income tax payable

ideas
19

The thread on COA custom fields was locked Custom fields for chart of accounts - #19 by Patch so continuing both here. (Edit, Oops an ideas COA custom fields thread is still open New Custom Fields and Chart of Account - #9 by Patch )

I guess the issue is what is readily achievable, so likely to be available in the foreseeable future vs what would work best in the long term.

Tax reporting categories and structure is typically jurisdiction dependant and complex enough that is probably best distributed to users via a country specific localisation. So looking at what each approach would entail to create such a localisation and what functionality it would offer.

COA Custom fields

  • Would require users to only to categorise their COA by setting a custom field on COA accounts

  • Would enable generation of very customised reports including some items included under more than one grouping

  • Writing the localisation would involve significant work as it requires generation of a structured custom field but also writing a report which uses the custom fields groupings.

  • Without a localisation specific report, this approach would probably be easiest to implement. But without such a custom report, at least the “Profit and Loss statement” would need the ability to optionally show custom fields. The user would also need to use a pivot table in a spreadsheet, which is probably beyond the capability of most users (and lacks drill down).

Multiple COA groupings

  • Writing the localisation would require only creating an alternate COA structure which contained all the Tax authorities groupings and as many of the totals as can readily be generated within Manager COA

  • The localisation would not require generation of custom reports as this approach assumes existing reports would be used but at least the “Profit and Loss Statement” would need the ability to use the alternate COA structure

  • Users would then be required to allocate their existing COA accounts to the Localisations groups

  • Ideally it would be possible to have multiple alternate COA structures, and be able to “Clone” a COA structure (from the read only localisation or user modified version).

On balance

  1. Just allowing custom fields on the COA and optionally showing them on the “Profit and loss Statement” maybe the easiest to add

  2. Multiple COA structures and at least the ability to select them for the “Profit and Loss Statement” maybe the easiest “Income tax payable” localisation to support

  3. Localisations with custom fields and and associated “Income tax payable” report maybe the most feature rich but only for jurisdictions for which the localisation were written.

My personal preference is having anything as the currently required work around is a bit complicated New Custom Fields and Chart of Account - #9 by Patch. Option 1 maybe an interim solution but option 2 would probably add more value to Manager. Option 3 would be nice but I suspect is not supportable for Mangers user base and price model.

Edit 1
To be more specific

  • the most useful report would be a “Profit and Loss Statement” with multiple comparator periods and alternate user / localisation COA structure.

  • The solution may also address the requirement for other reporting standards such as GAAP and perhaps ratio analysis

  • The most significant limitation of Multiple COA groupings is handling of items appearing twice such as Adjustments (items initially included then later subtracted out). Supporting that requires the negative of specific account to be added later in the report, a feature readily implemented with a custom field associated report. With a report based on a customised COA structure the equivalent functionality could be achieved by cloning the alternate COA and moving the adjustment accounts out enabling two reports; one including and the other excluding the account adjusted out.

  • Manager supporting importable COA structures (groups and totals) is likely to have a much wider application particularity during Manager business setup for different industries or business structures.

Edit 2
Added minimum modification to standard reports required for each approach & detail on supporting account adjustments.