Receive Money Cash Transaction

For Cash Transaction> Receive Money there are references in the Guides to a checkbox allowing the user to select an option of prices to be exclusive of taxes. This is referenced in the answers to several Forum posts. The default is said to be inclusive. Indeed this is the default option, but the dialog box isn’t there. I was expecting it to appear in the same place as under Receive Money when acting from a Sales Invoice. Is it revealed somewhere else?

The way this seems to operate now I’d be forced to have two inventory lists and a way to use them by selection. One with prices tax exclusive as I prefer to use on invoices. And another with tax included to use for recording sales as Cash Transaction. Thats not available is it?

Please clear up for me what Manager does internally with the payment. The Invoice or Cash Receipt has a total amount including taxes, whether they are calculated inclusively or exclusively. When the customer pays this total is recorded as a credit to either a cash or bank account right? There’s no separation of the item price total and the tax total into credits to different accounts is there?

What is the difference between calculating the taxes inclusively or exclusively, other than make it clear to the customer what the item prices are and what the taxes are? And what possible difference could there be to accepting the payment on a Sales Invoice or as a cash transaction?

In my case all payments are received in full upon the sale of goods or services so I’d prefer to use the Cash Transaction option, but it’s not possible to keep the tax calculation exclusive. This is frustrating.

You need to update your software. The feature was just added a couple days ago.

No, now you only need one. Previously, you might have wanted items with tax-inclusive and tax-exclusive pricing. Now you just need to check or uncheck the box.

Your description following the above quote of what happens confuses cash receipts and sales invoices. Processes are different. But your supposed operation is incorrect either way.

With a cash receipt, a bank or cash account is debited by the full transaction amount. A sales income account and the Tax payable account are credited by the amount of the sale and the calculated tax, respectively.

With a sales invoice, Accounts receivable is debited by the full transaction amount. The credits go the same places in the same amounts as for a cash receipt. No bank or cash account is involved, because no money has changed hands.

In the tax-exclusive case, Manager adds the tax to the amount. In the tax-inclusive case, Manager backs the tax out of the amount, after calculating what the unit price would have been to produce the inclusive price. So the numbers are not the same. See this Guide: Manager Cloud. The formula is explained in the note as the end.

A sales invoice accepts no payment. It establishes a receivable, that is, a debt owed by the customer to you. It means you are selling on credit. A cash receipt records actual transfer of money from the customer to you. So selling with sales invoices is a two-step process. Selling with receipts is a one-step process. But a sales invoice allows you to track transactions with the customer. A receipt does not. The payer is just a name on the form, unconnected to a customer’s subaccount in Accounts receivable.

Now it is. Update your software.

Thank you Tut, as always very helpful.