Thanks for your reply.
Basically and in theory you're absolutely right, BUT the national tax
authorities within the EU do
everything they can to prevent companies being formed and operated like
this.They want to have national entities
registered for VAT where they can claim the monthly or bi-monthly
Basically you're allowed to have one company and operate all over the
EU, BUT they you will have
HUGE difficulties with the individual tax authorities.
Another problem are the different VAT and company taxation rates
throughout the EU-nations. Ideally
we'd like to sell everywhere but only pay tax where rates are
super-low. Again this is prohibited and actively
enforced by tax authorities, i.e. each company, branch active in any
nation has to PROVE that material cost,
purchasing prices and internal invoicing does not include any
profit-transfer from high-tax national to low-tax nations.
As you can imagine, the above reasons make it practically impossible to
run one company with different sales
tax (VAT) regions. This is the reason why we have at least one company
per nation. Another problem related to
the medical business is that many customers are not allowed to purchase
from outside their nation because
of health insurnace restrictions. This forces us to have local
Now, I will study the webERP sales tax structure and function again.
Maybe part of it can be used.
Phil Daintree wrote:
Excuse my ignorance of EU requirements. Can't a company be registered for tax
in several different countries and collect VAT on sales to customers in
different countries and accumulate the different taxes in different accounts
- webERP can handle this out of the box. Expenses incurred in the different
areas - eg sales folks and distribution costs in the different countries
would all have input tax of different types and these could all be reclaimed
against the respective output taxes too. If a single company could not be
registered for several types of tax then of course the whole thing falls
Sales from one stock location to a customer attracts tax based on the location
of the branch of the customer being delivered to.
It seems miserable to have a whole bunch of companies for what is effectively
On Wed, 25 Jan 2006 23:08, Sigema Medical wrote:
Thinking about this company naming issue, I have the following proposal
for future development:
Many companies in the EU (like our organisation) are forced to have a
multi-company, multi-language structures,
because of the regualtions and requirements by authorities throughout
the EU countries. Usually we have 2-3 warehouses and 12-15 companies.
The companies are active loacally in their national markets, the
warehouses supply products within the fre-trade zone (usually consists
of several countries). From a financial point of view companies "buy"
and "sell" from each other to fullfill local orders.
The key reason for nations protecting their national companies is for
reclaiming sales tax (VAT). In the US one company can sell to all any
state, in the EU in should be able to, but in reality this does not
work, because of the VAT recovering problem.
Our companies are in fact similar to the webERP "branches", but with
their own identity, address, tax numbers etc. Each company is activ
within one EU-nation, using all the legal languages within that country
(I guess Switzerland is the extreme with 4 languages, most countries
have 2 languages).
In our case all companies use the same:
- logistic center (warehouse). Note: From an ERP point of view, the
warehouse is nothing but a branch of one company, which has a very large
- article numbering
- article definitions
It would be "wonderful" if webERP could do the following:
- separate inventory data from financial data
- run several companies,
- each with its own identity and set of templates
- each with several branches and warehouses
- each with its own GL and financial data
- by user's choise use one or several inventory databases
This would allow for:
- central management of articles and inventory
- user defined (by user parameters/security level) company access.
Or maybe I am so stupid, I haven't realized this could be set up in
webERP 3.04 with some minor changes?
Anyone tested this? or made similar changes to webERP?
Phil Daintree wrote:
I put up a description of the fix for this on the wiki FAQ at:
On Wed, 25 Jan 2006 01:12, Sigema Medical wrote:
I just made a new clean installtuion of webERP and encountered the
following error: "The company name entered does not correspond to a
database on the database server specified in the config.php
configuration file. Try logging in with a different company name"
Since my host gives me predefined mysql db names such as db_1, I had to
change the db_name variables in the sql script, I also made the
corresponding changes in config.php.
Whern I try to login with user "demo", pw "weberp" I get above error
Can anyone help?
This SF.net email is sponsored by: Splunk Inc. Do you grep through log
files for problems? Stop! Download the new AJAX search engine that
makes searching your log files as easy as surfing the web. DOWNLOAD
web-ERP-users mailing list