[Web-erp-users] Tax and Exch differences

[Phil D. <ph...@du...>]

They are a
>middle service provider, I.E. just Bank Payments And Receipts and Payment
>Matching. So I am atempting to understand how to integrate Tax when capturing
>basic receipts. Not to much of a problem, however I need to add a table or make
>a modification to the tax/level table to give the levels a proper name. But I
>must admit I have been skerting the isue as I do not precicely understand the
>tax/levels stuff. 
>
>To what does the levels realy bind. i.e. if I understand it correctly level 1
>would be eq. to say VAT 0% and level 2 would be eq. to VAT 14% and Level 3 =
>VAT Exempt ( when selling to another country ).
>
>If I am correct I would like to be able to name the levels with the
>corresponding TAX.
>
This is partly correct...
There is some extensive descriptions of the new tax calculation logic in the manual. However, in summary, the tax level is the tax applicable based on the product itself. Some tax authorities are kind in that kids clothes and food attract lower rates of tax. This is what the tax levels are for. Tax is calculated based on the tax level of the item, the tax authority of the branch being invoiced, and the tax authority of the stock location being delivered from eg a delivery or service provided by the Jberg warehouse/office to a customer in the Seyshells probably attracts not tax irrespective of whether the item was tax level 1, 2 or 3. The same service provided to  a customer in Bereeniging probably would attract tax if all items attract VAT then the tax levels are irrelevant.

Tax Authorities are already nameable and the tax authority of the office/warehouse is definable in the locations table.

I understand that in SA a company must issue tax invoices where it charges VAT out.
 So it is not really acceptable to enter VAT on receipts. The VAT charged out must be invoiced. 

>Also I am not to sure if forex is hanldled properly, Say a supplier works in
>dolars, I invoice in dolars, supplier pays in dolars.
>
>1) Tax payable on invoice.
>2) GL Accounts updated in Rand. (RSA currency ) using Ruling Exchange
>3) Bank Acc in Rand
>4) Client sends deposit slip
>5) Bank Receipt entered using ruling exchange 2
>6) Receipt Matching ocures on receipt of bank statement transaction on different
>exchange rate.
>
>Conclustion Forex variance needs to be updated at step 5 and again at step 6
>agording to my accountant. I do not see this in the system. I do not see this
>anywhere, I might be missing it though. Also I do not need it now but I would
>like to add it very soon if it is not there.


Its there ok. The receipt in US in entered at a rate at which it was banked into you Rand account. When receipts are allocated to invoices any differences in exchange rate between invoice exch rate and recipt exchange rate are calculated and posted to gl. Further reversing allocations later and reallocating recalculates the difference and posts that too! I don't know of another system that allows such flexibility.

>I am going through each page step by step trying to find errors and understand
>each step. I am currently at setup and general menu. 
>
>I have since descovered that the the periods should not be included in the
>imports table, it messes the system around. There should be no periods in that
>table when creating a new company. etc. I will eventualy submit a list of
>things I have descovered and things I have done.
>

Good point on the periods table. I will fix this when I get back.

Hope you can pull in this client.

Phil