Not Calculating taxes

1

Hi

I have an issue with my Manager software, it’s not calculating taxes when I use the module : Cash accounts : Receive money

Making invoices is fine I see the taxes getting calculated but when I create a receive money form it’s not calculating the taxes, then when I go back to invoices I only see the amount without the tax paid, so it shows the tax owing balance from the client. I’m in Canada (Quebec)

Anyone had this issue before

Thanks

John

2

When you create an Invoice, the tax is generated at that time - say 1000 +10% = 1100.
When you receive the money, there is no need to recalculate the taxes, as it just an invoice payt.

When creating the Invoice
Account Receivable = Debit 1100
Income = Credit 1000
Tax Payable = Credit 100.

When payment is Received
Bank = Debit 1100
Account Receivable = Credit 1100

3

Hi and thank you for the explanation, I understand what you are saying but why when I go in:

Sales invoices, I still see balance due

I entered 2 invoices: 1500.00 each tax 14.974% for 224.62 each so the balance due is 2 times 224.62, shouldn’t it be zero

I included some screen shot so you can have a better look

Thanks

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4

Each sales invoice was for 1500.00 plus the tax, for a total of 1724.61 each (your tax number was off). So the total account receivable for this customer should be 3449.22. Yet somehow, each sales invoice was for 1724.63. We’ll come back to that discrepancy in a moment.

Meanwhile, you entered receipts into your bank account in two deposits of 1500. So you have a balance due on both sales invoices of 224.63.

Just what do you think is wrong? As @Brucanna already told you, the tax is calculated only once, upon creation of the sales invoice. The customer should have paid you for the full amount, including tax. And that total is what should be entered. You should not be checking any tax code on the incoming receipt, just entering the amount the customer paid.

Now, back to the tax amount discrepancy. How did you enter the tax? If you have a GST + QST tax code that totals 14.974%, I suspect you did something irregular to enter the tax. Because Manager calculates that tax to be less than you show. Can you post a screen shot of the input screen for one of those sales invoices? (Obscure any proprietary information). Then post the resulting sales invoice itself from View.

5

Hi thanks for the explanation

Ok what I think is wrong is when you go to the invoices there are still amount due for both invoices, the tax is still shown as due twice: 224.63, shouldn’t I see a balance due of zero (0)

Here’s a screen shot of the invoice #2 the #1 is the same

I don’t understand when you say: Your tax number was off)

When you take a calculator and do 1500 x 14.975% you obtain: 1724.625

My issue is that invoices still show taxe balance owing (due)

Thanks

John

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6

Ok I fixed it thanks for your assistance, the only thing I would like to know, is there a way to, when creating the invoice to have it paid right away instead of having to go the the Cash account: Receive money and go through the whole process of receive money, so balance owing is always zero since clients pay me COD.

7

You will not see a zero balance due until you enter a receipt of the full amount receivable. This has been explained above by both @Brucanna and me.

Yes, you do. But your post said you were applying a tax rate of 14.974%.

No, the cash account must always be involved, because that is the only way to receive money. However, if you are always being paid COD, you can bypass the sales invoice. See this new Guide:

Note that when selling without a sales invoice, you must select your tax code on the receipt, because the tax has not yet been calculated and applied. In this case, however, the amount you enter must be tax-inclusive, because the cash receipt form does not have the ability to add tax, only to show how much of the total is tax.

8

Ok got it,

Thanks for explaining it to me,

Enjoy your day

John