When creating a purchase invoice it would be really handy to see what the applicable tax on the item is and the inclusive (if entered exclusive of tax)/exclusive (if entered inclusive of tax) price is as well, including the total gst over the whole invoice as part of the entry screen.
The way it works at the moment I have to update the new invoice and then go and view it. If the values don’t marry up then I have to go back and recheck everything. If the values were there in the initial instance, errors could be spotted earlier.
I understand what you are saying but are unsure where the problem is - otherwise lots of users would be noting.
Your Purchase Invoice layout should tell you the format of the input - exclusive or inclusive.
If its exclusive, just enter the line items as presented, if the pre tax sub-total matches then all is ok.
If its inclusive, tick the check box
The only time you should even use the tax code feature for purchase invoices is when the tax can be offset against Tax payable, as some tax authorities allow for some taxes. If the tax is paid by you to the supplier, but the supplier accounts for it to the tax authority, just enter the full amount charged for the line item. Then, the tax paid goes into the cost of the item and does not involve the Tax payable control account.
The problem I am having is a recurring one where tax isn’t at 10% of the total exclusive price and entering a 5 second invoice can take quite some time in trying to get the prices to marry up. Yes, I know the supplier should indicate which part of the supply is tax inclusive or not, but not all of them do. And calling overseas call centres trying to discuss local tax problems so far has never resolved the issue. This includes insurance companies and utility services as well as others.
I know the general answer is I should be understanding every part of my invoice and where each and everything is attributed, as we’ve discussed it before. Whilst I would generally agree and when time permits I can spend all day on it getting it right, but at the end of the day, when my gas bill ex-gst is $500 and gst is $40, I really don’t care how it’s divided. I just want my tax credit to count and count accurately. My gas service and/or whatever component of my gas for GST purposes is $400, the other $100 is still 100% relevant to the supply of my gas and nothing else. I don’t need accounts for gas-daily supply, gas-usage, gas-dd-fees, gas-special fee… it’s just gas.
Currently the only way is to create a pseudo tax-exclusive component line item. Some bills are easy to work out, some aren’t. Eventually I worked out why it was the case on the gas bill, but in reality, I don’t care. It’s all to do with the supply of gas, or bank services, or whatever. When they tell me they collect $45 GST it would be real handy to be able to work that out and get it correct on the one screen.
If they tell you the GST 45, then the amount is 450 - just multiply by 10, then the total minus 495 is the non GST component. Unfortunately, you can’t do a one line entry as tax is entered (calculated)as a percentage rather then an amount