In Zambia One of My Shops Fail to use manager.io on using recommended retail price was able to create the tax code but it uses the system price to compute tax. Is it possible to say tax is calculated on a custom field.
If so how do I do it?
For example:
If someone buys a painting which has price set to $1.00 and in the system that $1.00 should show but the government set a recommended retail price of $0.8 it means ta should be calculated on the rrp.
Does this RRP apply when the actual selling price is higher? In my limited experience with tax regulations, it’s usually the higher of the two.
Please check and reconfirm. In case what you say is true, please provide an official document stating that this is the law.
This will increase the chances of quick development to solve this issue.
Same rule exist in Pakistan. Products in Third schedule of Sales tax Act, tax is charged on Retail price (Printed on the Packaging of items). So manufacturers/importers have to charge tax on retail price and then pay to the authority.
Even discussed by someone before
Ok, so it’s a fixed amount tax. I have seen this in other software as well.
I think this is a good idea for development and I don’t think Custom fields will be required for compliance.
Would that suit your needs @encrypter?
Yes kind of but may change if retail price of an item changes.
One way it could be handled is to add ability to add Retail price option to tax code and when that code is selected then column for Retail price appear where it could be manually entered (maybe autofilled) according to which the tax should be calculated.
That requires two prices are entered into Manager
To do that in Manager two line items are required,
Have you tried a non inventory item to achieve this?
@Patch’s solution seems the only practical one. Any other approach would require a potentially staggering lookup table (either of specific tax amounts, recommended prices, or tax categories to be used in live calculations) as the number of inventory items grows. (Some users have thousands of items.) The maintenance of such a table would be a monumental task in a program like Manager.
This reality brings to mind another current forum topic about whether Manager will add a more advanced point of sale capability. The kind of tax structure being discussed in this thread is better handled in a POS system, not a general accounting system.
Another way is to enter purchase price equal to the retail price (So tax will be calculated according to that price) and then on second line Enter a trade discount which equal to the difference between selling price and retail price. So it could be handled but not an efficient way.
By this logic then there is not for need for tax codes at all. Just add taxes as separate line items and you are good to go.
That would work well when the actual sale price is less than the governments RRP. It also enables use of tax inclusive or tax exclusive invoices / receipts.
The marketing department may not be so keen on it if the actual retail price is more than the RRP.
You are miss quoting.
The logic is program design should be optimised for the majority of users direct accounting tasks but offer a viable solution for almost all jurisdictions accounting government requirements.
Doing so maximises the performance of developer time measured in terms of user benefit. Stated another way, large development effort which effects a small percentage of Managers user base is a poor use of scarce development resources so will result in lower overall program performance.
Having two independent unit prices for a single line item is a major change in program design which would benefit only a very small percentage of users. The functionality is already supported within the existing Manager feature set. Supporting it any other way would be a very low yield development task.
Thats the reason i didn’t mention this before i thought it is only limited to Pakistan even some users from Pakistan posted about this many years ago and it is very important for Pakistani users as many items falls in this category. But now this post from Zambia i think many other countries have this rule.
And not every user post about the limitations here so we really can’t really know the number of users who needs this feature.
About implementing this i think @lubos can comment on the complexity of implementing this if its possible?
So an example is this:
RRP for Coke is $10. VAT is 16%.But I am selling this Coke at $20.00. The system should be able to compute VAT using RRP which is $10x16%. If there is a way this can be done with manager.io let me know.
If you want it to be calculated automatically then not possible currently.
You have to do it manually.
@encrypter It appears you have not read posts #8 & #10 above including defining a non inventory item to automatically apply your government’s item specific tax.
If you mean where is the localisation to include all item specific taxes, that would be a reasonable feature for a country specific POS system (which Manager is not).
You could try and make do with batch update/create however a Zambia retail POS system for your industry is really how this price list should be maintained.