Sales amount difference

Can you kindly inform why this net sales amount is different between the invoice and the ledger?
Thank you in advance.
Kind regards
Sampath for ATMC

You need to furnish more information. Post screen shots of the Edit screens for this customer’s definition, and the sales invoice, and the tax code you applied.

Thank you for the reply. Please find the required info.

Your problem is that you defined the tax code as a flat rate code. Unless you are operating under a government-defined, flat-rate scheme, you should uncheck that box. Read about flat rate tax schemes near the end of this Guide: Create and use tax codes | Manager . “Flat rate” does not mean that the same rate is applied to all items on which this tax code is levied. It refers to the assumption of a flat rate for equivalent input VAT, avoiding the need for separate tax accounting on purchases. Even if you are under a flat rate scheme, the flat rate must be less than the nominal rate.

Thank you so much for the reply. It’s right.
May I ask this issue in this thread itself.

This transaction appears now as suspense account debit. Why is it?

You have no payee.

Thank you. Hope I need to assign revenue authority as a supplier. Is that correct?

That would not make difference in this case. The issue is likely there is no tax code created thus no built-in Tax payable account in Chart of Accounts.

As previously checked above in this thread Tax rate is set tax payable account is available. That is why I did not assign a supplier/ customer.

Hope this is also useful.

The revenue authority need not be a supplier, though you can do that if you want. They can be Other.

So, why this transaction goes to suspense. Should I change category of Tax Payable to liability from uncategorised?

I mean at chart of accounts

According to the trial balance you showed, your Tax payble account already is a liability account. That is where it should be.

I cannot duplicate your problem. I have entered a payment in a test business exactly matching yours. It is posted to the built-in Tax payable account, as it should be. It does not go to Suspense.

Drill down on the Suspense account on the Summary page and verify that the transaction for 16 LKR is actually this payment, rather than something else.

Also, what version number are you using?

@lubos i think this is a bug. payment made to the default Tax payable account goes to suspense on version 21.9.15
Test Business.manager (392 KB)

but it is strange. i do not see any such issues with my live business data. all old transactions and new transactions are posted to the correct acccounts.

Thanks for explanation. But I have not posted any other thing. Version is 21.9.6.

Thank you. Yes, It’s a bit strange. Also, in this case, I posted the payment from a NIL balance account. Shouldn’t there be restriction or a warning about insufficient balance?

ok i think i found a lot of issues here.
according to the guide here, Manager will not create the Tax payable account by default for new businesses, yet it still does.

when you create a new tax code Manager sets a greyed out Tax payable account by default.

this creates an uncategorized account in the COA.

i renamed the account to the exact same name Tax payable and added it to the Liabilities group.

the said amount still remained in Suspense.
when i edit the tax code, the account is still greyed out.

but when i try to change the account to the renamed account it shows as below.

i deleted the relevant tax transaction and the tax code. this automatically deleted the renamed Tax payable account. this proves the account was created by default when creating the tax code.

now i created a new Tax payable account under Liablities and then created the same tax code and set it to the correct account. then created a payment to the Tax payable account and now everything shows correctly in the summary.

@lubos i think the issue here is that Manager still creates a default Tax payable account when creating Tax Codes.

I have noticed this, too, but did not have time to write about it yet. @lubos, is this a relic feature? Or is this automatic account necessary for some reason to prevent other problems? It seems to me that since introduction of user-definable tax liability accounts, that account should no longer exist and user-defined accounts should be required.

I think creating default Tax payable account is correct. Otherwise it goes to Suspense and then people are confused why so many amounts are in suspense and it’s difficult to tell because when you click on the transaction, it’s not obvious until you connect the dots and realize the amounts in Suspense are tax amounts. I’ve noticed this struggle on the forum several times already.

So, Tax payable or whatever this default account is called, should exist.

However, what I’m thinking is that this account should not be available for manual entries. The moment you need to clear this account, you should create custom balance sheet account and edit your tax codes so they redirect to your custom balance sheet account. But this doesn’t have to be done on day 1 of using Manager. It can be done many months after using Manager.

What we are doing here is to make Manager useful as soon as possible with as little as possible up-front configuration. Basically defaults are good until you outgrow them one way or another.

So let’s think of Tax payable as semi-Suspense account.

The same principle could be used in other modules.