Inconsistency in Tax-reporting

[AJD]

@lubos

If you select supplier on receipt, then Manager knows it’s negative purchase (supplier refund) rather than sale.

Then there is the possibility that a payment from a supplier is not a refund. One example is that a supplier may have a promotion that offers a cash payment for introducing some new business. Another is the supplier may be returning an over payment that you have made (which is different from a refund).
Then there is the issue of a refund on return of inventory as highlighted by this post:

Receipt Refund / Payment Refund

Should there be separate transactions for Receipt Refund and Payment Refund? I will give an example to demonstrate the reason I have asked this question. I sell 5 widgets and enter a Receipt transaction to record this. [image] Using a Custom Report - these are the accounts that are affected: [image] A week later the customer returns the 5 widgets and I enter a payment transaction: [image] However this is treated as a purchase of 5 widgets and does not reflect in the inventory sales acc…

I have given this problem some thought and would like to offer this solution:

1. Have a default customer of “Spot Customer Transaction” hard coded in the system.
2. Have a default supplier of " Spot Supplier Transaction" hard coded in the system
3. Create 3 additional transaction forms for customers called Customer Receipt, Customer Payment and Customer Refund.
4. Create 3 additional transaction forms for suppliers called Supplier Payment, Supplier Receipt and Supplier Refund.
5. All of the new customer forms will have a field to select customer. If the hard coded “Spot Customer Transaction” customer is selected a field will be made available to enter payer details and proceed with a non-invoice transaction. Otherwise if other customer is selected an option will be provided to receive against an invoice, pay against a Debit Note, or refund against a Debit note or if none selected proceed with an non-invoice sale, payment or refund for this customer.
6. All the new supplier forms will have a field to select supplier. If the hard coded “Spot Supplier Transaction” supplier is selected a field will be provided to enter payee details and proceed with non-invoice transaction. Otherwise if other supplier is selected option will be provided to pay against an invoice, receive against a credit note or refund against a Credit note or if none selected proceed with a non-invoice payment, receipt or refund.
7. The existing Receipts and Payments would no longer be needed.

I have avoided using the word “Cash” as it has different uses and is confusing. e.g. Cash(as in Bank notes) vs other types of payments (EFTPOS, cheque, bank transfer, credit card, etc). Also, Cash (as in immediate payment) vs some form of terms payment (invoice, on credit, etc).

You may think that this idea is a bit presumptuous, but even if it doesn’t “float your boat” there may be something that may assist in making the necessary changes and it would solve the issue of linking customers/suppliers to “cash” (there’s that confusing word again) receipts and payments.