The short answer is, your problems mybe different to to what is discussed here.
The “VAT calculation Worksheet” is a report transformation of the “Tax summary” report. Which means the information in the “Tax summary” report has been used to calculate local reporting fields with the results formated in a similar manner to local forms. So if the “Tax summary” report is indeed correct then so should the reformatted report / “VAT calculation Worksheet”.
To try and clarify what is being discussed here, lets assume you go to one of your suppliers collect some goods or receive a service and they issue you a invoice. You pay your 166.66 and leave. I have intentionally left out the details of the two line items so we can focus on how Manager processes them and later decide the result we actually need for particular cases.
We take the invoice to the bookkeeper our business uses who recognizes it as an invoice from one of the businesses suppliers so creates a matching purchase invoice in Manager
As we paid while we were at the supplier the bookkeeper also entered the payment into Manager
In Manager it the invoice now shows it has been paid
As we are a new business and that is the only transaction it is visible in the summary screen in Manager
But more importantly for this thread it is visible in the “Tax summary” report. The entire transaction has only effected the Purchase for Vat reporting
Now suppose our book keeper had decided to enter the same invoice as a “cash” purchase in Manager. So didn’t create an invoice in Manager but entered the same information directly as a payment.
Looking at the Summary screen in Manager, it is identical to option 1 above
However when looking at the Tax Summary report it has changed. The Tax liability has not changed but now we are reporting more Purchases as well as some Sales.
There is at least an “Inconsistency in Tax-reporting”, the subject of this thread.
What Manager has done is assume
- Line item 1 and line item 2 are independent stand alone transactions
- Line item 1 is a purchase as money is going from an external party to the business
- Line item 2 is a sale as money is going from an external party to the business.
This type of transaction is a barter type transaction, which jurisdictions define and require treatment as a sale and separate purchase when that is what is occurring (eg Australia ). The correct way to enter them in Manager using invoices is to create a Purchase invoice for item 1 and a sales invoice for item 2. When the payment is entered into Manager 266.66 is allocated to the purchase invoice and -100 to the sales invoice (or they can be settled with a journal entry as described in the guides).
What sales and what purchases should be reported to your tax authority depends on exactly what item 1 and item 2 are and local tax laws. Importantly though this is a decision the business owner makes to comply with local laws. The suggestion in this thread is it would be helpful if a Manager user could specify if a transaction was a sale or purchase and that specification would then apply to all the line items in a transaction. The facility is particularly useful where most data data is entered into Manager via importing bank transactions rather than first entering invoices (“cash” sales / purchases in Manager terminology).
An equivalent issues occurs with sales if a point of sales system external to Manger is used. The POS generates the sales invoices. When the transactions are imported into Manager via a bank statement import, most will be assigned a sales however if any negative sales adjustments are used, Manager will record it as a purchase.