Outstanding Balance Feature

1

Do manager have feature for maintaning outstanding balance similiar to sales/purchase invoice but we can use it in another account (maybe in special account or others)? Example I have many prepaid transactions or customer deposits, it feels hard enough to trace manually which one prepaid/customer deposit that already done to be write-off or cleared and which one it still outstanding. It identically with sales/purchase invoice that have feature to outstanding balance in order to help us easier to find which one transaction to be write-off/clearing-off.

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2

same problem we are also facing …
please resolve issue

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3

Why not only use account receivable? the deposits will be automatically adjusted in new invoices unless it is legally required for you to treat deposits separately.

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4

Yes we need to separate deposits. We have to post deposit customers on liability acocunt first when receive money because no transaction occurred yet, it’s merely a down payment for an order to be completed, which may potentially extend beyond the month’s period. If we directly post to the AR, it would posted as a revenue and must fulfill taxation obligation whereas that orders potentially cancelled or changed.

It’s just a case related to customers deposit, we do another transaction that need outstanding balance feature.

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5

Yes, outstanding balance feature maybe can help us much.

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6

Orders have no effect on P&L, but Invoices have. So not clear what you refer to. Also please provide a link to the tax authority with the legal requirement for this.

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7

I understand orders have no effect to PnL. But when we accept orders and receive money as a down payment, we dont create it to sales invoice directly because we mitigate taxation that must be fulfill when two options have occurred that are when goods already delivered or when money already receipt. Receiving money were not a sales yet to mitigate taxation it so we posted it to customers deposit even orders could be cancelled or changed whereas we receipt money.

see my statement, “if we directly post to AR, it would …”, not if we post to orders.

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8

If by revenue you mean on Profit and Loss side revenue then it doesnt happens unless you issue a Sales Invoice. Receiving money from Customer doesnt increase revenue it just decreases customer liability.
If you mean Tax authority count all credits to account receivable as Revenue then it might be handled sparately.

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9

Please note that it may be illegal if not creating a sales invoice when receiving partial funds based on a sales order. Obviously this depends on your jurisdiction and the specific circumstances of the transaction. Generally, accounting and tax laws in many countries require that a sales invoice be issued whenever goods or services are sold and payment is received, whether in full or in part.

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10

yes I handled separately for these so when money receipt we dont create it to sales invoice. That’s why I’m looking for outstanding balance feature similiar to Sales/Purchase Invoice but not using both tab.

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11

Even if your business wants to dodge tax requirements at the point of receiving partial payments based on a sales order by not immediately issuing an Invoice, the customer may suffer from not being tax compliant by this action. I advise you seek legal council.

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12

that’s not illegal, we mitigate it because the money we receipt also can be refunded to customer in order to post it to deposit customers. Similiar to e-wallet that you can top up it and use money in e-wallet to transaction in its platform or you can refund.

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13

we dont avoidance taxation but the nature process is customer deposit because all money from customers could be refunded (similiar to e-wallet).

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14

I made my points and strongly advise you to seek council. There is special treatment for refunds and credit facility but once a payment is received in full or partial for a service and or product this needs to be invoiced and the complete amount expected listed. I am sure that you will not pass a tax audit by your auhtorities whatever explanation you try to give. Wish you luck.

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15

I think we need to back related to outstanding balance feature. Customer Deposits just a example and all taxation obligation already fulfill.

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16

I just ran your situation through Chatgpt and the following is in agreement with my comments, I added emphasis [bold] where needed:

Legal and Tax Requirements in Indonesia:

  1. Tax Invoices (Faktur Pajak):
  • Obligation to Issue: According to Indonesian tax law, a tax invoice (Faktur Pajak) must be issued for any taxable supply of goods or services. This includes partial payments.
  • Regulation: The issuance of tax invoices is regulated under Indonesian VAT Law (Law No. 8 of 1983 as amended by Law No. 42 of 2009) and related regulations, such as the Minister of Finance Regulation No. 151/PMK.03/2013 and its amendments.
  1. Content of Tax Invoices:
  • Tax invoices must include specific information, such as the date of the invoice, details of the seller and buyer, description of goods or services, amount, and VAT amount.
  • For partial payments, the tax invoice should reflect the amount received and the corresponding VAT.
  1. Sales Order vs. Sales Invoice:
  • Sales Order: This is a preliminary document and does not replace the need for a tax invoice.
  • Tax Invoice: Must be issued when a taxable event occurs, such as the receipt of partial payment.
  1. Reporting and Compliance:
  • Businesses must report issued tax invoices in their periodic VAT returns.
  • Failure to issue a tax invoice or improper documentation can lead to penalties under Indonesian tax law.

Practical Implications:

  • Partial Payments: When receiving partial payments, you should issue a tax invoice for each payment. This invoice must include the details of the payment received and the applicable VAT.
  • Documentation: Maintaining proper documentation, including tax invoices for all payments (full or partial), is essential for compliance and audit purposes.

Source:

The official regulations and guidelines regarding tax invoices can be found on the website of the Directorate General of Taxes (DJP):

  • DJP Website: Direktorat Jenderal Pajak
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17

In Indonesia similar to other countries E-Wallets require a Bank License issued by the countries Central Bank.

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18

Isn’t this like selling a gift card? A debit to cash and a credit to Customer Deposits (which is either a Liability or a contra-Asset account)?

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19

No it is not. A Sales Order caused some amount of payment and as such it should result in a Sales Invoice against which that payment is recorded. Any other “treatment” is illegal in many countries. A refund can always be made and it will deduct the tax amount due. Deciding on your own what and when is in most cases illegal. Manager provides all the “tools” to stay legal.

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20

The discourse in this topic about the legality of the treatment of deposits received violates the forum rules. It is bordering on giving legal advice based on the interpretation, by unqualified participants, of the laws of other countries.

This is not the purpose of this forum and offending posts should be removed.

I am also not sure about the wisdom of relying on advice from a Chatbot on legal matters.

There are different reasons for accepting deposits and it is up to each forum user to consult a professional regarding how particular items should be treated in their country.

In some cases it may be legitimate to record a deposit on the balance sheet and a forum user asking how to do this is entitled to receive help on how to achieve it.

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