purchase order sales tax entry

[aswath narayana]

Hello,
In India, following is a common use case.
* A company buys goods from a supplier.  The company pays sales tax to the
supplier.  For example, a TV cost from the supplier is 100.  Then the
supplier also puts sales tax for the purchase.  In this case, it is 7%.  The
total amount payed by the company is (100 + 7).

How can this transaction be recorded in OFBiz.

I configured sales tax using TaxAuthority.
I do the purchase order entry and in the final created purchase order
following are the values shown:

Item Subtotal : 100
Total Sales Tax: 7
Total Due: 107

Then I do 'Quick receive purchase order'.

Then I go into
accounting->OrganizationGLSettings->Reports->TransactionTotals.

I don't see any entries recorded for the tax paid.

Please suggest

Thanks
-Aswath

[aswath narayana]

I guess, what I am asked is not OOTB yet.
I am figuring how to do this. During TaxAuthority setup:
* There is no GLAccount configured when taxes are paid during the purchase.

Hence first step, to record the taxes paid is to change TaxAuthority.  It
could be done like this:
* During the addition of GLAccount for the taxAuthority, add a dropdown with
two values
  - Incoming tax
  - Outgoing tax

Next step ( i have not gone in detail), would be to create outgoing tax
entries in the
'CreateInvoiceFromShipment'->'CreateAccountingTransactionEntries'

-Aswath


On Mon, Jul 6, 2009 at 3:46 PM, aswath narayana
<[hidden email]>wrote:

> Hello,
> In India, following is a common use case.
> * A company buys goods from a supplier.  The company pays sales tax to the
> supplier.  For example, a TV cost from the supplier is 100.  Then the
> supplier also puts sales tax for the purchase.  In this case, it is 7%.  The
> total amount payed by the company is (100 + 7).
>
> How can this transaction be recorded in OFBiz.
>
> I configured sales tax using TaxAuthority.
> I do the purchase order entry and in the final created purchase order
> following are the values shown:
>
> Item Subtotal : 100
> Total Sales Tax: 7
> Total Due: 107
>
> Then I do 'Quick receive purchase order'.
>
> Then I go into
> accounting->OrganizationGLSettings->Reports->TransactionTotals.
>
> I don't see any entries recorded for the tax paid.
>
> Please suggest
>
> Thanks
> -Aswath
>
>
>
>

[aswath narayana]

I experimented a little more here about the sales tax and found out that the
functionality what I was looking for is already OOTB.
Just an FYI,  and may benefit others,

After the purchase order is created and the goods are received, a Purchase
invoice is created.
The accounting transactions happen after the following is done
* Invoice is received
* Invoice is accepted
* Invoice is ready for posting

Go to
OrganizationGLSettings->Accounting->AccountingTransactionEntries->Choose the
GLAccountID.
Looking at the accounting transaction entries, there a 'D' entered for
DebitCreditFlag indicating that it is a salestax that is paid.

If this flag is 'C', then it indicates that the salestax is collected.

Thanks,
-Aswath


On Wed, Jul 8, 2009 at 11:06 AM, aswath narayana <[hidden email]
> wrote:

> I guess, what I am asked is not OOTB yet.
> I am figuring how to do this. During TaxAuthority setup:
> * There is no GLAccount configured when taxes are paid during the purchase.
>
>
> Hence first step, to record the taxes paid is to change TaxAuthority.  It
> could be done like this:
> * During the addition of GLAccount for the taxAuthority, add a dropdown
> with two values
>   - Incoming tax
>   - Outgoing tax
>
> Next step ( i have not gone in detail), would be to create outgoing tax
> entries in the
> 'CreateInvoiceFromShipment'->'CreateAccountingTransactionEntries'
>
> -Aswath
>
>
>
> On Mon, Jul 6, 2009 at 3:46 PM, aswath narayana <
> [hidden email]> wrote:
>
>> Hello,
>> In India, following is a common use case.
>> * A company buys goods from a supplier.  The company pays sales tax to the
>> supplier.  For example, a TV cost from the supplier is 100.  Then the
>> supplier also puts sales tax for the purchase.  In this case, it is 7%.  The
>> total amount payed by the company is (100 + 7).
>>
>> How can this transaction be recorded in OFBiz.
>>
>> I configured sales tax using TaxAuthority.
>> I do the purchase order entry and in the final created purchase order
>> following are the values shown:
>>
>> Item Subtotal : 100
>> Total Sales Tax: 7
>> Total Due: 107
>>
>> Then I do 'Quick receive purchase order'.
>>
>> Then I go into
>> accounting->OrganizationGLSettings->Reports->TransactionTotals.
>>
>> I don't see any entries recorded for the tax paid.
>>
>> Please suggest
>>
>> Thanks
>> -Aswath
>>
>>
>>
>>
>