India

also, please clarify when there is only one tax component.
for example, IGST 12%

just to make sure that we are on the same page, I was referring to displaying the tax code on line items. the present implementation for the Totals section can remain the same.

another suggestion.
instead of Inward and Outward, in my opinion the correct terminology would be Inflow and Outflow or Input and Output because we are only determining the flow of tax amounts irrespective of the type of transaction.

Sorry for my intrusion but hat’s great news, globally. I hope we could be able to restrict some tax codes to specific transactions like just credit notes or just journal entries.

@lubos similar to the screenshot in another post below, why is it that we are unable to see any accounts like Net Purchases or Net Sales in our localization. it was there previously although not working.

@sharpdrivetek reporting categories are more basic. But it is for a good reason.

For example have a look at the this tax code:

  • Tax-exclusive amount (aka net purchase or net sale) will be posted to reporting category called Intra.
  • Tax amounts for CGST component will be posted to reporting category called Intra CGST
  • Tax amounts for SGST component will be posted to reporting category called Intra SGST

Then on report transformation, you are just using these reporting categories.

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awesome. I will try experimenting the possibilities.

also, can you please confirm about the tax names for outward and inward wrt to posts #71 and #72

That’s not an issue. We know we need separate tax codes for outward and inward. I’ll figure out so the presentation is right on invoices and the words “outward / inward” or whatever you choose will not leak into printed invoices.

Also, I know we end up with many tax codes but I will probably implement some mechanism where you can specify transaction form types where these tax codes should be applicable so they are not a choice everywhere. This will make things simpler for user so they won’t see inward tax codes on sales invoices as an example.

@lubos for single rate tax codes there is no provision to enter the Tax Amount category. it says Reporting Category on the line instead of Tax Amount.

Yeah, I will rename Reporting Category to Tax Amount. But that’s just presentation issue on the form. It should still work as intended.

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@lubos can you please fix the size for Reporting Category.

I am confused. how exactly will separate inward and outward tax codes determine if the tax amounts are credits or debits to an account?
an outward tax code selected on a purchase invoice will still debit the tax control account.
all we are able to achieve is get the tax amounts separately.

@lubos i think you should provide the ability to control Credits and Debits for tax components. my use case was explained here.

That’s correct. Manager doesn’t know Output: CGST + SGST 28% is not really meant to be used on purchase invoices.

But I could improve tax codes so you can optionally select transaction types for which tax code is applicable to use. So Output: CGST + SGST 28% would not really be selectable on purchase invoices which would limit number of options for user.

Is this viable?

@sharpdrivetek in the latest version (21.11.15) you can create report transformation with up to 6 columns now.

image

thank you. that will be a start. hope to see many more soon for sales reports.

this will only limit the clutter on transaction forms which by the way is necessary.
but what I am really looking for is a way to control amount recognized as a credit or debit to an account.
for example, the reverse charges in our country are always a credit in the liability account irrespective of whether it is selected on sales or purchase invoice.
this is because such amount cannot be offset directly when the transaction occurs. the business needs to remit this amount in cash to the authorities before it can be utilized as an input credit. since a payment is debit entry to the account, it will only inflate the control account.
you can check the RCM Payable account in localization where I have entered sample transactions for more clarity.

Have a look at your sample purchase invoice.

image

The tax code implies that the owe supplier ₹ 1,050.00 but you really owe just ₹ 1,000.00 because supplier is not collecting ₹ 50.00 in tax from you. So the tax rate for this tax code is really 0% and it’s “Reverse Charged” at rate 5%.

Now, when tax code is reverse charged, it will “reverse” the tax transaction within the same tax liability account but what it seems like, you actually need it to be reversed in another tax liability account.

And the reason is that government doesn’t let you to offset these tax amounts with each other. You actually need to physically pay the tax liability (thus benefit of having 2 tax accounts) and only then government will give you credit (or refund) so the second account can be cleared.

yes you are correct.
for the invoice I had no other option because Manager does not allow multiple tax components when Reverse Charge checkbox is enabled for tax codes. also, there is no possibility to control to which account these amounts are posted.

correct again. but there are also possibilities where only partial credit is available even after remitting the full tax amount to authorities. that is the reason for creating seperate ITC(Y) and ITC(N) tax codes. Y implies credit eligible and N implies credit ineligible.

@lubos the first report is almost ready.

  1. I need to create totals from columns to complete the report. any chance you could enable arithmetic operations between cells?

  2. the report needs to display figures as positive values.

You can create a Total by putting the required Tax Reporting Categories into the cell

i am aware of the possibility but you can only get the sum of reporting categories at present.

What other sum would you want?

You can hardly want the sum of something which is not on the reort?

i never said i needed sum of something. i asked for possibility of arithmetic operations which could arrive at a total.

every country has different requirements for their localized reports.