[Web-erp-developers] Re: [Web-erp-users] tax rates...

[Phil D. <we...@pa...>]

In short webERP doesn't appear to cope with the multiple tax requirements on 
one invoice. A different rate of tax can apply to every line on the invoice 
and freight can have a different rate again, but two different taxes on the 
same invoice - no can do as things stand.

Your idea to have a dummy item that charges the first level of tax with a 
description of tax @ 7% where the tax is calculated manually. You could make 
a separate product category with general ledger posting set up to credit a 
PST account in the general ledger instead of sales. GST would then calculate 
on the total of the line items including the PST.  I may have PST and GST 
round the wrong way - but you see what I mean.

It sounds as though we really need yet another layer of abstraction to handle 
multiple taxes. This would need a whole lot of thought to figure out how to 
do.  I thought Steve Kaill was Canadian and would have brought this to my 
attention before now. I would like the system to work for Canada but it does 
seem as though it is not entirerly suitable.

Phil


> >>
> >> I could easily charge the combined rate.  I have thought of that.
> >> But, on the invoice, can I program in something to show the
> >> equivalent of each tax paid?  I will need this for my
> >> monthly/quarterly tax reports.  It will also be needed for the client
> >> when they deal with their taxes. I have received bills like that from
> >> my suppliers actually. The main bill shows the combined rate, and the
> >> to the list, under the list of products and services sold.
> >>
> >> I talked to my friend about it, and he came up with a potential
> >> solution. After we have the subtotal, can we create a service charge
> >> and this would be the first tax (7% of the subtotal), and then when
> >> the programmed tax (the one built into the software) comes along, it
> >> would tax on top of the subtotal and first tax.
> >>
> >> Thanks
> >>
> >> Joseph
> >>
> >> On Oct 3, 2004, at 3:47 PM, Phil Daintree wrote:
> >>> Is the tax paid to the same authority or do you have to pay PST
> >>> separately to GST to different bodies?
> >>>
> >>> You could arrive at a combined rate easily enough say GST =10% and
> >>> PST 5% PST charged on the GST inclusive amount
> >>>
> >>>
> >>> so PST is 5% on 110% of the net ie 5.5% of the net. The combined
> >>> rate is then 10% + 5.5% = 15.5%.
> >>>
> >>> Phil
> >>>
> >>>
> >>> ----- Original Message ----- From: "Joseph Hogan"
> >>> <ho...@tc...>
> >>> To: <web...@li...>
> >>> Sent: Sunday, October 03, 2004 3:28 PM
> >>> Subject: Re: [Web-erp-users] tax rates...
> >>>
> >>>> On Oct 2, 2004, at 3:26 AM, Daintrees wrote:
> >>>>> The manual has a fair bit on this.
> >>>>> However, the rate is calculated based on the net amount of the
> >>>>> invoice also
> >>>>> only one rate of tax can apply to a given invoice line.
> >>>>
> >>>> I just reread you message.
> >>>>
> >>>> Do I underdstand correctly then that if here in Canada we have our
> >>>> two taxes, that all of Canada will not be able to use this software
> >>>> (except Alberta, since they have no PST.).  This surprises me,
> >>>> since there is a canadian that was involved in the manual
> >>>> preparation (I think that it was the manual ), and he/she woudl
> >>>> know that places have different ways of calculating taxes.
> >>>>
> >>>> This one rate of tax is limiting, because I have seen more and more
> >>>> cities levying their own municipal sales tax in certain parts of
> >>>> town. This could make a possible 3 taxes being charged.
> >>>>
> >>>> Please correct me if I am wrong.  I hope I am, otherwise, I will
> >>>> have to look for another piece of software.  I was getting used to
> >>>> Web-erp, and its interface.
> >>>>
> >>>> Joseph
> >>>>
> >>>>
> >>>