Re: [Web-erp-developers] TAX / VAT

[Daintrees <p.d...@pa...>]

Wow - he's back!!
All sounds exciting.

Phil
----- Original Message ----- 
From: "Danie Brink" <br...@na...>
To: <web...@li...>
Sent: Thursday, August 05, 2004 11:22 AM
Subject: Re: [Web-erp-developers] TAX / VAT


> Hi Phil
>
> I see you are awake and the list has ignored my answer to this question. I
hope
> it apears again.
>
> The short answer is no we do not implement multiple taxes on a single
entry. All
> we are doing is reversing the way it has been implemented by giving the
level a
> name and implementing ref integrity. It also means the levels will be
named. We
> will also be spliting the rates from the levels/Tax categories and we are
> binding them as a tax type conected to a tax authority. A linktable
replaces
> the old Taxlevel table and the arbitry level in stack master is replaced
with a
> reference to the TaxCategory Table. It allows for rate maintenance
independant
> of the actual levels by tax authority.
>
> I am currently half way through this and will finish it as soon as
possible. We
> are also doning a lot of work on the Work Orders and Costing ( The Full
> manufacturing you just mentioned. ) Although the costing will be a
prototype on
> our side, writen in a different lanuage. There are also some automatic
unit
> conversion in the works and a GUI version of WebERP. Its going to be hell
to
> keep up with you guys, But everything will be contributed inculding the
report
> framework at a later stage. It is more flexible in regards to multilevel
> reporting, However it is part of the GUI framework and uses an expression
> parser. So I will probably make it an independent server you can
comunicate
> with via local host. There are a lot more we want to do before we are
ready for
> the Trade Show next year June.
>
> Kind Regards and let me know what you think.
>
> Danie Brink
>
> Quoting Daintrees <p.d...@pa...>:
>
> >
> > Tax can get hairy.
> >
> > The changes you are proposing Danie does it mean that each line item can
> > have more than one kind of tax associated with it as per
Open-Accounting?
> >
> > Will the tax category be another field in Stocks - perhaps replacing tax
> > level.
> >
> > I have not been through your earlier email so I am probably asking silly
> > questions I'll go back and read up.
> >
> > Phil
> >
> > ----- Original Message ----- 
> > From: "Danie Brink" <br...@na...>
> > To: <web...@li...>
> > Sent: Wednesday, August 04, 2004 11:40 AM
> > Subject: Re: [Web-erp-developers] TAX / VAT
> >
> >
> > > Ok I will explain how it will be set up using my example.
> > >
> > > We set up two tax categories FoodBooks and Other using lowest worst
tax
> > breakout
> > > i.e. in germany you have 2 and in Say South Africa you have one.
Notice
> > that
> > > you ignore the 0% as it is always available.
> > >
> > > Now you create two tax authorities Germany and South Africa.
> > > Then we add Taxes for Authorities
> > > Germany with LowVAT @ 7% GLAcc = XX1 and HighVAT @ 16 % GLAcc = XX2
> > > South Africa with OneVat @ 14% GLAcc = XX3
> > > **Note that these are the Names not the Inv Display Lable
> > >
> > > Now we assosiate categories with Authorities and Rates and
> > >
> > > Germany - FoodBooks = LowVat, Other = HighVat
> > > South Africa - FoodBooks = OneVat, Other = One Vat
> > >
> > > It is slightly more complicated because there are two tax authorities
in
> > play
> > > per record Receiving And Dispatching but it serves to demonstrate the
> > point
> > >
> > > Selecting On the StockItem for "Core PHP Programing" TaxCategory =
> > FoodBooks and
> > > "100x 4 inch nails" TaxCategory = Other
> > >
> > > On invoice/Order the Sales Location becomes Dispatch and the Customer
> > becomes
> > > receiving thefore resolving with assosiation gives applicable taxes
and
> > GLAcc
> > > Destinations for those taxes. The Taxes gives the display lables to
apear
> > on
> > > the invoice.
> > >
> > > Note that the previous system also queried an assosiation table so
about
> > the
> > > only difference is that we join three tables ( Stock, Assosiation,
Taxes)
> > as
> > > the two required tax authorities are already selected and supplied
through
> > > location and customer. I do not think the over head of adding an extra
> > table
> > > into the query will be that significant as the taxes table is realy
small
> > and
> > > Assosiation is very specific when
StockTaxCategory=AssosiationTaxCategory.
> > >
> > > I hope this helps or is in line with what you explain.
> > > You can query your GLAcc to find out exactly how many taxes were
> > accumulated (
> > > in, out or combined) as you please.
> > >
> > > **Note that setting a tax category to None=0 the tax is assumed to be
0
> > and
> > > there will be no GLAcc entries for 0% of anything.
> > >
> > > Now The Questions
> > >
> > > How much did I spent for goods from outside EuropeanUnion (native 0%
VAT)
> > ?
> > >  * the answer lies in the purchased amount of items of this stock type
as
> > it is
> > > known that it is external, therefore sales / purchaces of this item
may be
> > > posted to that GL account using the Stock Categories not the Tax
> > Categories of
> > > cause the amounts in the GL acount will exclude the vat amounts
therefore
> > it
> > > could be included using the transaction ID.
> > >
> > > How much VAT did I pay at the customs for these goods? (not food or
books
> > 16%)
> > >  * this problem may be solved by adding two more tax categories one
set
> > for
> > > native and the other for non native using seperate GLAcc's you ignore
the
> > 0% as
> > > the 16% for non native GLAcc will in fact be import duties. Once again
the
> > > stock item itself knows if it is natively aquired.
> > >
> > > How much did I spent for goods (bought at companies) from inside EU
(0%
> > VAT)
> > >   * Determined by using Stock Categories not the Tax Categories quiry
> > respective
> > > GL Account.
> > >
> > > How much did I spend for goods from private German sellers (0% VAT)
> > >   * Same solution as previous.
> > >
> > > How much did I spent for goods (bought at German companies) (16% VAT)
> > >   * This one is slightly more tricky as you would like to exclude
> > purchases of
> > > 7% and 0% the solution here is to seperate items with different
> > TaxCategories
> > > into different StockCategories as well.
> > >
> > > It is probably better to introduce something like a taxcenter where a
> > stock item
> > > may be assigned a tax center either directly of through a tax category
> > this
> > > will leave the Stock Categories out of the equation.
> > >
> > > I hope all of this makes sence.
> > >
> > > Kind Regards
> > > Danie Brink
> > >
> > > Quoting Dirk Eversmann <dir...@gr...>:
> > >
> > > > Thank you for your great response!
> > > >
> > > > @Dick Stins:
> > > > "In the taxlevel you can enter the GL accountnumber per level.
> > > > For your turnover, you can enter per item an accountnumer. So you
can
> > setup
> > > > turnover 0%, turnover 7%, turnover ... GL accounts."
> > > >
> > > > Yes, but it does not really help :-(
> > > >
> > > > @Danie:
> > > > "Could you send me a more thorough description as I am in the
process of
> > > > customizing the Taxes to work more modular so I might as well look
at
> > your
> > > > requirement and try to incorporate it."
> > > >
> > > > I will try again to make it clear:
> > > > I have to report in detail the VAT every month. VAT is the
difference of
> > > > Tax I have payed while purchasing goods and the Tax I collected
while
> > > > selling goods.
> > > > Cases:
> > > > I buy standard-goods (16%VAT) from a German distributor for EUR 116
> > > > GL-Costs16%=EUR 100 / GL-VAT-paid-16%=EUR 16
> > > >
> > > > I sell standard-goods (16%VAT) to a German customer for EUR 174
> > > > GL-Turnover16%=EUR 150 / GL-VAT-received-16%=EUR 24
> > > >
> > > > So I added EUR 50 value to the goods and have to pay EUR 16 VAT
> > > >
> > > > (food and books have 7%)
> > > >
> > > > No problem so far. The detailed report is the thing. My tax
authority
> > wants
> > > > to know:
> > > > How much did I spent for goods from outside EuropeanUnion (native 0%
> > VAT)
> > > > How much VAT did I pay at the customs for these goods? (since I do
not
> > sell
> > > > food or books 16%)
> > > >
> > > > How much did I spent for goods (bought at companies) from inside EU
(0%
> > VAT)
> > > >
> > > > How much did I spend for goods from private German sellers (0% VAT)
> > > > How much did I spent for goods (bought at German companies) (16%
VAT)
> > > >
> > > > And a few more cases may apply.... Basicly same thing for selling
> > > > goods......
> > > >
> > > > Problems with webERP arise in this situation:
> > > > I pay with Mastercard (creditor) a bill of a US-company (0%VAT) and
a
> > bill
> > > > of a German-company (16%VAT)
> > > > I should have
> > > > 1 liability
> > > > 1 GL-cost-16%
> > > > 1 GL-cost-0%
> > > > 1 GL-paid-VAT-16%
> > > > entry
> > > >
> > > > My workaround is setting up 2 Mastercard creditors: one with 16%VAT
and
> > one
> > > > with 0% VAT. This leads of course into two liabilities....
> > > >
> > > > Hope, I made my problems clear.
> > > >
> > > > Have a nice day, Dirk
> > > >
> > > >
> > > >
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