I found a previous discussion related to the topic but i am starting a new topic anyway because a lot was discussed there which might cause confusion.
- So my question is why the Tax Transactions report do not include the Journal entries where Tax codes have been selected on line items?
My situation is that the purchase invoices i receive from suppliers have rounding applied to the tax figures as well. so to match their invoices i always include a line item for Rounding and enter the positive or negative figure. Since we need to file our tax returns every month and the fact that my suppliers will be filing their returns for these rounded tax values, I make a journal entry at the end of every month summarizing all the rounding adjustments for that month. I do select the tax codes and this shows the correct Tax Payable in my Summary page. now this tax payable shown is the difference of both credits and debits. but we have to file tax returns mentioning the sales and purchases separately. so for this the only option we have is the Tax Transactions report.
Since the journal entries are not included in this report the tax values are different (i am not saying incorrect) from what i have to file. It wastes a lot of productive time viewing hundreds of invoices every month and noting down the figures to calculate the liability for returns filing.
- Can an option be added for Tax Transactions Report where the user can opt Manager to report the rounded invoice values under the columns Total Sales and Total Purchases (which is the actual invoice value used to file tax returns)? I am sure most businesses use rounding for their invoices. It would be really helpful to see the same figures on the report and the invoices.
It would be even better if an additional column was added to show the Taxable Value.