Re: About Taxes

[Antonio G. <ag...@ib...>]

Dieter:

What about the payments?

Why we cannot use an account for payments. To track the history of when and
how much a customer pays or we pay to a provider.

Antonio Gallardo.


----- Original Message -----
From: "Dieter Simader" <dsi...@sq...>
To: <sql...@li...>
Sent: Monday, May 28, 2001 10:58 AM
Subject: About Taxes


> A brief overview how to set it all up and how it works.
>
> 1. Add an account in the chart of accounts.
>
> 2. check the box "Tax" if you want
>    Receivables -> a field to enter an amount in the receivables form
>    Payables -> a field to enter an amount in the payables form
>    Parts Inventory -> a checkbox with the description in the parts form to
> indicate that this part is taxable
>    Service Item -> a checkbox with the description in the service
> item form to indicate that the service is taxable
>
> 3. check "Yes" next to "Include this account on ..." if the account should
> be included on the customer / vendor forms to indicate that the customer /
> vendor is taxable at this level
>
> Repeat above for each tax you have. i.e if you have VAT @ 10, 14 and 30%
> add an account for each tax.
>
> 4. edit your preferences and enter a tax rate and tax number
>
>
> On an invoice the tax can either be included in the price or shown
> separately. If tax is included in the price the tax portion is not shown
> on the invoice. Taxes are only calculated if the customer/vendor is
> taxable at the same rate as the item. So, if a customer is taxable at VAT
> @ 10% and the item is set taxable at VAT @ 30% no taxes will be
> calculated. You must also indicate that the customer is taxable at VAT @
> 30%.
>
> Taxes are calculated differently if included in price or shown on top.
> i.e.  $100 item, taxable at 7%
>  tax included -> net price is 93.46, tax portion is 6.54
>  tax on top -> net price is 100.00, tax is 7.00
>
> multiple taxes are always additive and not calculated tax on tax.
> So, the same $100 item at 7% and 8%
>  tax included -> net price is 86.96, tax is 13.04
>  tax on top -> net price is 100.00, tax is 15.00
>
>
> Dieter Simader    http://www.sql-ledger.org   (780) 472-8161
> DWS Systems Inc.     Accounting Software       Fax: 478-5281
> =========== On a clear disk you can seek forever ===========
>
>
>