Some Problem In Tax Transaction By CASH Basis

As topic name I have some problem in Cash Basis Tax Transaction Report.
Is It BUG? OR i do something wrong? or Some Mistake?

  1. Tax transaction By Accrual Basis

  2. Tax Transaction By Cash Basis

    (Why This one Invoice Is devide Into two Parts in Cash Basis type TAX Transaction?) as display in above Image

  3. Purchase Invoice

  4. Edit Screenshot of Purchase Invoice


  5. Transactions

You have not given enough information to diagnose any problem, if there is one. You need to post a screen shot of the Edit screen for this purchase invoice.

Edited in original post.

Your trouble appears related to the fact that you have paid part of the purchase cost in cash and part by money transfer. You have mixed a cash payment with a purchase invoice, possibly duplicating part of the transaction. Look at the cash payment voucher and the money transfer voucher. Do they both post to Accounts payable? That would be correct, but I suspect they do not. And remember that cash transactions are always tax-inclusive, whereas purchase invoices are tax-exclusive unless you designate otherwise.

@AaiRIz, you paid the purchase invoice in 2 installments (1,045, and 200). The tax is apportioned over the two payments. Manager does not know that the payment is for a particular line item on the invoice (freight).

As to why the 2 reports look different:

On a cash basis, the transaction takes places when the cash is paid. You made 2 payments, so there are 2 transaction.

On a accrual basis, the transaction occurs when you make the purchase invoice. You made one purchase invoice, so there is one transaction.

1 Like

But In Second transaction I paid 200. But in Cash basis (Total Purchase 190.60 and Tax Paid 20.42)

Ok that I know, But… Is there any way in manager that I can link the Transport Details with the Invoice.
Actually in our purchase Invoice, its not with Transport or Cargo Price. But I need Transport slip/Details with Link to that particular Purchase Invoice, (For Easy to find, and also for the Actual Inventory Cost). And Transport Company Dose note accept Cheque or Bank transfer for now. So We have to pay them in Cash.

Keep in mind that the Tax Transactions report is a report about the taxable part of a transaction, and not the total amount for the transaction.

In your case 4045.44 of 4255.00 is taxable, or 95.3% is taxable. So 200 * 95.3% is 190.60.

I’ll have to think about that, but start with the “Entering separate freight-in invoices” section of the guide: Add freight-in to inventory item costs

Let us know if you find a satisfactory solution.

1 Like

Reading through the Guide Also … and also Create Separate Freight-in Invoice for Transport charge.
But That’s Not the solution.

For Example If there are two Inventory Items in different Quantity & value. Then only Inbuilt Freight-in option works Great. Manual Adding a Inventory Cost is not accurate and also we have do a double work for that simple thing So its not a solution.
In separate Invoice for Freight-in charge… its a headache for add that inventory and then in same invoice enter the negative qty to ADD only Freight-in charge to that Items without Increasing the Qty. (In this … we can use manually entering the freight charge…that’s easy… but I prefer automatic proportionate calculation of Freight-in…and its a headache work)
Can manager Team Provide solution on this? for batter management of Freight-in Cost to the Inventory. which is also linked with that Invoice… for batter identification of freight-in charge…
Actually now this Topic is diverted on other point…

Where there is a separate invoice for freight-in, you don’t add any inventory to that invoice but you add the freight-in to the original inventory purchase invoice and then reverse out with a contra account, then the separate invoice for the freight-in gets posted to the contra account to cancel it out.

Original Inventory Purchase Invoice amended for separate Freight-in Invoice

Separate Freight-in Invoice posted to contra account to cancel out separate take up

Now all the freight-in is proportioned correctly without manual fiddling.

1 Like

IS Freigh-in Contra Account is in Expense?? Not sure where it will be create… So please tell.
And yes… It seams Perfect solution… As for now…

As it is a clearing account it is located in the Balance Sheet, generally as a Liability account.
This way, if it has a balance it stands out.