Tax calculation using cash transaction or bank transaction directly wrong

1

Hi,
I’m new here I found tax calculation wrong only when I receive or pay directly from cash transaction or bank transaction
I see your post and I found tax calculation wrong also I try many time every time wrong
https://forum.manager.io/t/make-cash-purchases-purchase-without-purchase-invoices/7325

for example I did purchase by cash or bank and paid to supplier
1 qty good cost = 100
tax vat: 5%
total 100
Includes VAT 5% = 4.76
Vat tax should be = 5 why it’s written 4.76

can you please check and tell me the solution because if I did not include tax how I can know Tax payable in summary or in report

Thanks you

2

All direct payments and receipts are tax-inclusive. So Manager calculates what the price without tax would have been. It posts that amount to the income or expense account and the tax to Tax payable. Using your example:

100 (Total) - 4.76 (VAT) = 95.24

If the sale had been on a sales invoice and was tax-exclusive:

95.24 (Price) + 4.76 (5% of Price) = 100.00

The formula is:

Calculated price = Tax-inclusive price / (1+ Tax rate) or, for your example,
Calculated price = 100 / 1.05 = 95.24

3

thanks for replay
if there is option same purchase invoice to not select tax-inclusive will be great
hope in update version will be option in direct payment so we can choose between tax-inclusive & tax-exclusive

like this the only way to write tax-exclusive by purchase invoice

I have another question
if I did not enter inventory item and I did purchase invoice to purchase goods
which account should i select ?
do I have to create new account if yes under which group

Thanks You

5

Purchase invoices are tax-exclusive by default. Check the box to make them tax-inclusive. Read the Guide: https://www.manager.io/guides/7189.

That is already on the Ideas list. I suggest you search the forum before posting questions and suggestions. Everything you have posted about has been addressed many times before.