OK, looks like we actually need separate field Label to specify what tax code should be named on printed documents. The latest version (21.11.35) has that now.
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thank you @lubos. that fixes one of the issues. can you please update on the below?
and
OK you want to have two control accounts for tax codes. Can you confirm that tax authority maintains two separate accounts at their end too? What I mean by that… based your lodgements, you can ask tax authority what is your RCM payable and GST payable separately?
And when you pay RCM and GST, do you have to specify whether you are paying RCM or GST and it’s not possible to pay both at once? You need to make two separate payments into two different accounts? I’m just double-checking that we are replicating what is really happening.
Can you post screenshot of some example how does it look?
Hello @sharpdrivetek
Why there is such a huge number of tax codes in localization. I don’t think there is any need of 156 tax codes.
Main Tax rates that are commonly used are:-
5%
12%
18%
28%
So For each rate there is
CGST+SGST Output
IGST Output
And 2 For input
4 for ineligible ITC
2 for Exempt Rate Category
Total 8 for each means total of 32 tax codes+2 exempt codes.
There is no need of 0.25%, 1.5%
7.5% and 3% Rates.
Manager is not a GST Return preparation Software it is a accounting software and it needs to include only those tax codes which are Commonly used.
Other Tax If needed Then It can be created By User Itself
Dear @lubos
As we are using Diffrent tax codes for input and output. So there must Be Two Tax Codes(Input and Output) on Inventory master data instead of Just a Single Tax Code.
Because all combinations of single rate tax codes which may ever be used must be created in the localisation. The tax authority single rate tax codes do not exist in their own right in Manager, only the combinations.
Rarely used tax combinations can be inactivated so most users will never see them.
There is also talk of Manager adding some data input logic so the likely tax code subsets are shown for each screen.
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the government maintains three ledgers namely cash, credit and liabilities. cash ledger maintains records of tax paid in cash, credit ledger maintains available input credits and liability ledger maintains other records including the said reverse charges. https://www.cbic.gov.in/htdocs-cbec/gst/51_GST_Flyer_Chapter17.pdf
the total tax to be paid can be remitted in cash together. after the total liability is known the portal just allocates the payments to the desired ledgers automatically.
the need to have two separate accounts is because even if the reverse charges are remitted to the authorities, full/part of the tax amount cannot be used as input credit depending on the goods or services.
the total of the invoice is the taxable value and the tax amounts are shown separately as an information with a note to the end consumer which does not affect the invoice total to be paid.
I’m working on the presentation but I’ve noticed RCM tax codes do not have Reverse Charged checkbox checked.
Why is that? Because these tax codes do not work the way they should.
yes. i had only changed one input and output tax code each to check how they work (Sales Invoice 21007 and Purchase Invoice R001). I thought I will update all RCM tax codes after there were improvements to their behavior. Also, I need to recategorize them and add to the report transformations accordingly.
as per the above screenshot,
- the credit transaction for purchase invoice is correct but we do not need the automatic debit transaction. a proper payment transaction would create the debit and move the figure to regular liability ledger.
- since the tax codes are reverse charged, we would expect a debit transaction when selecting them in sales invoices. possibility to control the automatic offset transaction would be consistent with the above requirement.
I’m experimenting with presentation. Here is how it could work:
Tax exclusive amount
Tax inclusive amount
In both cases we arrive at Sub-total which includes tax which is then deducted.
@lubos would it be possible not to show the sub-total and remove the word Less: ?
the totals section would just need the total payable and then followed by the tax payable similar to when withholding taxes are applied.
also, I do not see the tax component name being displayed at the totals section in your screenshot.
it should also be noted that reverse charged invoices do not need tax-inclusive option as far as i know.
@lubos in my opinion the previous presentation of reverse charged invoices would have been sufficient. all it needed was to display the tax amount in the totals section. the tax amount was anyway captured in the backend that just needs to be printed on the document.
@ASEGC1725 why are you creating foreign currencies in the localization?
@sharpdrivetek If any user Has business in multiple currenies then he can use.
he does not have to create
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@ASEGC1725 the following are still valid for localizations.
in my opinian foregin currencies are used By Busineess And it should be pre incorporated into the programe.
so user do not have to Worry about How to define Foregin Currencies
this is similar to saying all business have customers so the program should provide a customers list to the business.
unfortunately that is not the idea for introducing localizations. you should read the related topics by searching the forum to understand better about localizations in Manager.
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Besides not being part of localizations, currencies are not a basic setting that appears to everyone.
Also, if I had some business in USD and EUR, I don’t want the full list of every currency in the world to appear in my settings.
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Actually, I agree with @GMONGA . It would be convinient to have foreign currencies in… but I’m not currently picking them up because there are two issues which I will need to address first
- Foreign currencies need to support ability to set
inactiveand by default, all foreign currencies will need to be inactive for new businesses. I do not want multi-currency to be enabled by default because that adds bunch of new fields everywhere. By default, users should get minimal viable double-entry accounting system. - Foreign currencies need to have one more field to specify default exchange rate to base currency. This way when business is using foreign currency, they will automatically have balance sheet reporting roughly correct balances in base currency even if they do not set up any specific exchange rates.
So feel free to add foreign currencies, it just won’t be leveraged in any way and at this time, I’m ignoring them.
Also, even if foreign currencies will be leveraged at some point in the future, it won’t affect existing businesses. It’s not like someone creates foreign currency in localization and that foreign currency gets imported into your existing business. That will never happen.
@lubos if you have plans to create foreign currencies, then why not include it as a feature of Manager rather than part of each individual localization? this would eliminate the possibility of different number of foreign currencies in each localization.
Actually you could find a solution to gather all base currencies from individual localization. When a user selects their country, every currency other than the base currency would be considered as foreign currencies.
This would help to have accurate currency details since the base currency in every localization would be pre-verified.
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