Setup VAT-Taxes

[Adrian Stern]

Hi

I've spent the last two days trying to setung VAT-Taxes for Switzerland.
Well... first just "a" working configuration and from there i will got
further.

So using the Information i've found in various snippets of unfinished
documentation i've created a TaxAuthority and setup a Catalog containing a
Category which contains a single product.

When i create a new invoice and add the product (for which i did define a
price), the price is not added to the invoice. Also if i set a Price
manually in the position of the invoice, the taxes don't get added to it.

So my conclusion is: None of he below mentioned "Documentation" shows the
big picture necessary to understand the VAT-Implementation giving realistic
expectation about what is gonna work, thus leaving out importent parts
making it impossible to work with them.

*If someone could point me to a usable documentation of the topic or could
tell me the key-settings for enabling VAT. I would really appreciate it. If
i get it to work satisfactory, i will create a documentation and put it in
the wiki at the end of the semester.*

Something like a checklist maybe?

   1. Create Products
   1. Enable "foo" on product
      2. Setting "bar" on category
   2. Create Tax Authority
      1. And so on...


Tax:

   1.

   https://cwiki.apache.org/confluence/display/OFBIZ/08+Tax+Authorities
   2.


   https://cwiki.apache.org/confluence/display/OFBTECH/OFBiz's+Tax+Authority+Data+Model
   3.

   https://cwiki.apache.org/confluence/display/OFBIZ/VAT


Catalog:

   1.

   Set up catalog/categories
   <http://www.hotwaxmedia.com/apache-ofbiz-blog/ofbiz-tutorial-how-to-setup-the-ofbiz-catalog-manager/>
   2.

   http://ritesht.blogspot.ch/2008/03/categories-and-catalog.html


Various

   1.

   Ofbiz Tutorials - Hotwaxmedia
   <http://www.hotwaxmedia.com/apache-ofbiz-erp/tutorials/>
   2.
   https://cwiki.apache.org/confluence/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT

[Pierre Smits]

Adrian,

Not only do you need a tax authority (set up in accounting), and a product
category for products that are taxable, but you need to connect the two as
well.

See this example:
http://demo-stable-ofbiz.apache.org/accounting/control/EditTaxAuthorityCategories?taxAuthPartyId=UT_UTAH_TAXMAN&taxAuthGeoId=UT-UTAH

Also, you'll need to set the percentage, see this example:
http://demo-stable-ofbiz.apache.org/accounting/control/EditTaxAuthorityRateProducts?taxAuthPartyId=UT_UTAH_TAXMAN&taxAuthGeoId=UT-UTAH

I trust that helps.

Regards,


Pierre Smits

*ORRTIZ.COM <http://www.orrtiz.com>*
Services & Solutions for Cloud-
Based Manufacturing, Professional
Services and Retail & Trade
http://www.orrtiz.com

On Fri, Oct 3, 2014 at 4:34 PM, Adrian Stern <[hidden email]> wrote:

> Hi
>
> I've spent the last two days trying to setung VAT-Taxes for Switzerland.
> Well... first just "a" working configuration and from there i will got
> further.
>
> So using the Information i've found in various snippets of unfinished
> documentation i've created a TaxAuthority and setup a Catalog containing a
> Category which contains a single product.
>
> When i create a new invoice and add the product (for which i did define a
> price), the price is not added to the invoice. Also if i set a Price
> manually in the position of the invoice, the taxes don't get added to it.
>
> So my conclusion is: None of he below mentioned "Documentation" shows the
> big picture necessary to understand the VAT-Implementation giving realistic
> expectation about what is gonna work, thus leaving out importent parts
> making it impossible to work with them.
>
> *If someone could point me to a usable documentation of the topic or could
> tell me the key-settings for enabling VAT. I would really appreciate it. If
> i get it to work satisfactory, i will create a documentation and put it in
> the wiki at the end of the semester.*
>
> Something like a checklist maybe?
>
>    1. Create Products
>    1. Enable "foo" on product
>       2. Setting "bar" on category
>    2. Create Tax Authority
>       1. And so on...
>
>
> Tax:
>
>    1.
>
>    https://cwiki.apache.org/confluence/display/OFBIZ/08+Tax+Authorities
>    2.
>
>
>
> https://cwiki.apache.org/confluence/display/OFBTECH/OFBiz's+Tax+Authority+Data+Model
>    3.
>
>    https://cwiki.apache.org/confluence/display/OFBIZ/VAT
>
>
> Catalog:
>
>    1.
>
>    Set up catalog/categories
>    <
> http://www.hotwaxmedia.com/apache-ofbiz-blog/ofbiz-tutorial-how-to-setup-the-ofbiz-catalog-manager/
> >
>    2.
>
>    http://ritesht.blogspot.ch/2008/03/categories-and-catalog.html
>
>
> Various
>
>    1.
>
>    Ofbiz Tutorials - Hotwaxmedia
>    <http://www.hotwaxmedia.com/apache-ofbiz-erp/tutorials/>
>    2.
>
> https://cwiki.apache.org/confluence/display/OFBIZ/FAQ+-+Tips+-+Tricks+-+Cookbook+-+HowTo#FAQ-Tips-Tricks-Cookbook-HowTo-PricesWithVAT
>

Getting started with apache OFBiz accounting by Sharon Foga has a example of adding a new tax authority.
Not sure this is what you are looking for as it does not mention in the steps VAT.
Her steps are create tax authority party, tax authority setup rates, region),link the tax authority to the company, process a customer order to veify that the rate from new authority is applied.
Hope that helps.

[Adrian Stern]

@Pierre Smits
Thanks for your Reply. Both of this i did. The percentage is used was 10
instead of 0.1. But if it had worked, the numbers would've just been bigger.
Also i did create the Link to "Company".

@joelfradkin
Since you're talking about a whole book, which i cannot purchase in time,
is this by chance what you are talking about?

https://de.scribd.com/doc/138056993/Accounting-5-Step-Guide

When i've found the time to read en re-check, i will reply once more. So
thanks for the time being.

On 3 October 2014 19:22, [hidden email] <[hidden email]>
wrote:

> Getting started with apache OFBiz accounting by Sharon Foga has a example
> of
> adding a new tax authority.
> Not sure this is what you are looking for as it does not mention in the
> steps VAT.
> Her steps are create tax authority party, tax authority setup rates,
> region),link the tax authority to the company, process a customer order to
> veify that the rate from new authority is applied.
> Hope that helps.
>
>
>
> -----
> Joel Fradkin
> --
> View this message in context:
> http://ofbiz.135035.n4.nabble.com/Setup-VAT-Taxes-tp4656487p4656494.html
> Sent from the OFBiz - User mailing list archive at Nabble.com.
>

[Adrian Stern]

Small Update:

The 5-Step Accounting Guide does not help with tax matters. I've ordered
the book and it should arrive sometimes next week.

I've found out what "nexus" means for a company and changed the setting to
Y. Which did not help. Also i changed the Tax-Type from VAT to Sales Tax in
order to verify if it works with this seemingly more common setting. It did
not.
What i did to check if the settings apply and the taxes get calculated is
to create an invoice with the product from my catalog, created a payment
with the necessary amount and paid it. To check the glAccouns i used the
Trial Balance.

For my understanding: Is Nexus basically defines if a party has to actually
pay taxes because some treshold is reached.

*Is my understanding of "nexus" correct?*
*Does the Trial Balance and my general procedure to test taxes suffice?*


On 6 October 2014 14:29, Adrian Stern <[hidden email]> wrote:

> @Pierre Smits
> Thanks for your Reply. Both of this i did. The percentage is used was 10
> instead of 0.1. But if it had worked, the numbers would've just been bigger.
> Also i did create the Link to "Company".
>
> @joelfradkin
> Since you're talking about a whole book, which i cannot purchase in time,
> is this by chance what you are talking about?
>
> https://de.scribd.com/doc/138056993/Accounting-5-Step-Guide
>
> When i've found the time to read en re-check, i will reply once more. So
> thanks for the time being.
>
> On 3 October 2014 19:22, [hidden email] <[hidden email]>
> wrote:
>
>> Getting started with apache OFBiz accounting by Sharon Foga has a example
>> of
>> adding a new tax authority.
>> Not sure this is what you are looking for as it does not mention in the
>> steps VAT.
>> Her steps are create tax authority party, tax authority setup rates,
>> region),link the tax authority to the company, process a customer order to
>> veify that the rate from new authority is applied.
>> Hope that helps.
>>
>>
>>
>> -----
>> Joel Fradkin
>> --
>> View this message in context:
>> http://ofbiz.135035.n4.nabble.com/Setup-VAT-Taxes-tp4656487p4656494.html
>> Sent from the OFBiz - User mailing list archive at Nabble.com.
>>
>
>

[Pierre Smits]

Adrian,

For a short explanation on nexus, in the tax context,  have a look here:
http://en.wikipedia.org/wiki/State_income_tax#Nexus

In general, the nexus is the party responsible for the taxes due by its
subsidiaries.

Best regards,

Pierre Smits

*ORRTIZ.COM <http://www.orrtiz.com>*
Services & Solutions for Cloud-
Based Manufacturing, Professional
Services and Retail & Trade
http://www.orrtiz.com

On Wed, Oct 8, 2014 at 10:55 AM, Adrian Stern <[hidden email]> wrote:

> Small Update:
>
> The 5-Step Accounting Guide does not help with tax matters. I've ordered
> the book and it should arrive sometimes next week.
>
> I've found out what "nexus" means for a company and changed the setting to
> Y. Which did not help. Also i changed the Tax-Type from VAT to Sales Tax in
> order to verify if it works with this seemingly more common setting. It did
> not.
> What i did to check if the settings apply and the taxes get calculated is
> to create an invoice with the product from my catalog, created a payment
> with the necessary amount and paid it. To check the glAccouns i used the
> Trial Balance.
>
> For my understanding: Is Nexus basically defines if a party has to actually
> pay taxes because some treshold is reached.
>
> *Is my understanding of "nexus" correct?*
> *Does the Trial Balance and my general procedure to test taxes suffice?*
>
>
> On 6 October 2014 14:29, Adrian Stern <[hidden email]> wrote:
>
> > @Pierre Smits
> > Thanks for your Reply. Both of this i did. The percentage is used was 10
> > instead of 0.1. But if it had worked, the numbers would've just been
> bigger.
> > Also i did create the Link to "Company".
> >
> > @joelfradkin
> > Since you're talking about a whole book, which i cannot purchase in time,
> > is this by chance what you are talking about?
> >
> > https://de.scribd.com/doc/138056993/Accounting-5-Step-Guide
> >
> > When i've found the time to read en re-check, i will reply once more. So
> > thanks for the time being.
> >
> > On 3 October 2014 19:22, [hidden email] <[hidden email]>
> > wrote:
> >
> >> Getting started with apache OFBiz accounting by Sharon Foga has a
> example
> >> of
> >> adding a new tax authority.
> >> Not sure this is what you are looking for as it does not mention in the
> >> steps VAT.
> >> Her steps are create tax authority party, tax authority setup rates,
> >> region),link the tax authority to the company, process a customer order
> to
> >> veify that the rate from new authority is applied.
> >> Hope that helps.
> >>
> >>
> >>
> >> -----
> >> Joel Fradkin
> >> --
> >> View this message in context:
> >>
> http://ofbiz.135035.n4.nabble.com/Setup-VAT-Taxes-tp4656487p4656494.html
> >> Sent from the OFBiz - User mailing list archive at Nabble.com.
> >>
> >
> >
>

[Adrian Stern-2]

This is my business mail address. I will not use the other one anymore.

Freundliche Grüsse

Adrian Stern
unchained - web solutions

[hidden email]
[phone]

[Adrian Stern-2]

Hi Sharan

I tried the process starting from a sales order. The prices where added
automatically but there where still no taxes calculated. No Tax-Account
used in balance.

The process of creating a sales order was a bit painful. I had to create
payment methods for the store - which does make sense. When i was
finalizing my order i hit complete many times but it was just reloading the
same page without a message explaining why the order could not be
created... after adjusting a few things it works but i dont know exactly
why as of yet.

*So the Questtion: *When you tried this steps, where the taxes applied
correctly?

Freundliche Grüsse

Adrian Stern
unchained - web solutions

[hidden email]
[phone]

On Thu, Oct 9, 2014 at 1:39 PM, Adrian Stern <[hidden email]>
wrote:

> This is my business mail address. I will not use the other one anymore.
>
> Freundliche Grüsse
>
> Adrian Stern
> unchained - web solutions
>
> [hidden email]
> [phone]
>

[Helm77]

You know understanding of VAT taxes was not my cup of tea until I clear my all doubts in Finance and accounts from Aloke Ghosh. I am really thankful to him, as he made my carrier and always been there for me.