To explain, the first picture shows an Inventory Item where the Input tax is set (red box). [01] When a Purchase Invoice is used for this Inventory Item, the Tax field is prefilled correctly for the input tax, see picture 2. [02] But when this Inventory Item is sold, the Tax field in the sales …

Why do you have separate tax codes Input VAT Tax 24% on purchases Output VAT Tax 24% on sales If you create a single tax code “VAT 24%”, Manager (mostly) keeps track via the “Tax Summary Report” of Purchases with VAT 24% applied Sales with VAT 24% applies Note calculation of this report curren…

In my country, Iceland, separate tax codes is standard procedure for recording VAT, and in line with what every business is doing and how tax authorities structure tax reports. I know VAT setup is kind of like culture, where as it depends on where you are in the world and nothing is right or wrong …

I’m not sure if separate settings for sales & purchase entries are suppose to be recorded but the recommended way of accounting for VAT in Iceland is to download the Iceland tax codes https://www.manager.io/localizations/is/ which assumes you use the “Tax summary report” to separately report sales & …

@Tor , you misunderstand how default tax codes are applied in Manager. A tax code set for an inventory item is applied to it whenever it is invoked for a transaction, no matter what type. For a sales invoice, the tax calculated is credited to the Tax payable account as part of balancing the amount …

@Tut thank you for your thorough answer but I think there is still some misunderstanding, the thing is Net for VAT would be fine by me as such and I know that is how Manager runs by default, but what I am trying to do is adapt Manager to fit the “nondefault” local approach of how businesses do their…

[image] Tor: Then when tax is due, these two accounts are combined in the Tax Payable account. You can follow your approach of different taxes and accounts to accumulate them for input and output VAT. But you cannot combine them in Tax payable except by journal entries. And, if you are going …

[image] Tut: You can follow your approach of different taxes and accounts to accumulate them for input and output VAT. But you cannot combine them in Tax payable except by journal entries. yes, locally the Journal Entries is what has always been used. Hopefully this approach will change with…

[image] Tut: What are you referring to with this comment? You seem to be saying that, in your experimentation, input and output VAT accounts work, except for the default tax code field on the Inventory - sales account. yes I realise Inventory Sales account should not have VAT associated with …

[image] Tut: Don’t think the custom tax would apply as there is always the same VAT used. I don’t understand this comment for several reasons As it is always the same VAT% was it supposed to say, my point was Custom VAT didn’t apply as Custom VAT seems to be thought for use with more than …

[image] Tut: Why not rely on the Tax Summary already available? Yes, I agree Tax Summary is preferable. But in this case I think you could say “old” or “nondefault” business approach and local tax regulations overrides preferable IT approach but hopefully it will change with time as Tax Summ…

Prefilled Tax field on Sales Invoices not as expected for Inventory Sales

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Prefilled Tax field on Sales Invoices not as expected for Inventory Sales

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