Batch 340: Sales and Withholding Tax are supported now
Purpose
Purpose: Added a new functionality where multiple types
of Tax legislations are supported. The current focus is for Canada
and USA. However the settings is made available to all
legislations (except The Netherlands) for testing and further
feedback. The settings for this new functionality is by
default NOT enabled.
Previously, in Exact Globe 2003, only VAT
type of taxes is supported. Other type of taxes such as Sales Tax, Withholding
Tax, and other type of taxes were not supported.
With
this phase 1 of this new implementation of Exact Globe 2003, a
generic structure that support multiple tax codes to be entered in a single
entry line is implemented. For now, only Sales Tax and Withholding tax are supported in
addition to the current VAT type. In the 1st implementation, the general
idea here is to allow user to be able to see and make entries and apply
multiple tax codes to the entries (Journals, Orders, Invoices) and system
should be able to calculate in simple tax scenarios.
The scope of this 1st phase will support /
contain the following functionality:-
1)
Possible to define the following
:-
a.
Sales Tax
b.
Withholding Tax
c.
Tax on Net amount or Net amount +
Tax (for Tax on tax)
2)
Able to enter 5 tax codes per line in :-
a.
Sales Journal
b.
Purchase Journal
c.
General Journal
d.
Sales Order entry
e.
Purchase Order entry
f.
Invoice entry
3)
Tax calculation for the tax codes entered will
a.
Determine the correct tax basis
amount for every tax codes
b.
Determine the correct tax amount
for every tax codes
4)
Able to print new tax code in the following
layouts
a.
Sales order layout
b.
Purchase order layout
c.
Invoice layout
5)
Generate the correct accounting entries including
the new tax entries
6)
Generate the correct terms
|
In this release the functions not supported are as
below:- |
|
T
Project
invoicing
|
T
E-Quotation
|
|
T
Project maintenance
|
T
Extra charges in
logistics
|
|
T
Copy
invoices
|
T
Import/export
|
|
T
Reprint
invoices
|
T
Invoice
overviews
|
|
T
Recurring
invoices
|
T
Order
overviews
|
|
T
E-Project functionality
|
T
Tax Reports and
overview
|
|
T
E-Manufacturing
functionality
|
T
Transactions/cards
overviews
|
|
T
Country specific functionality i.c.w.
multiple Taxes, e.g. Czech
rounding
|
T
Recurring
Entries
|
|
T
MRP related calculations
|
|
What is Implemented
1) Settings via [System/General/General ledger settings]
A new settings "Use Tax Module" has been
created for this functionality.
By default, this setting will always be OFF
The setting "Show: Maximum number of tax codes"
let user indicate how many tax codes to display in the entry screens and
journals. The Maximum that can be displayed is 5 Tax codes. This control also
applies to the corresponding Tax basis and tax amount fields.
User is also allow to show the maximum 5 Tax
Code columns in Sales Journal, Purchase Journal, General Journal, Bank/Cash
Journal, Sales Order/Purchase Order/Invoice. And also a maximum of 5 Tax Basis
columns and 5 Tax Amounts columns can be shown as well.
Requirements:
When the setting is ON:
-Existing customers with 'VAT' will have an
additional type of 'Withholding Tax'
-For Canada and US
will have the 'Sales Tax' and 'Withholding Tax'
When the setting is OFF:
-The existing 'VAT' implementation would apply
2) Tax Maintenance
New functionality added
Tax Type - To indicate if the tax is Sales tax
/ VAT or Withholding tax
Calculation Basis- to indicate if the tax basis for the line where the tax
code is used should be the 'Net Invoice Amount' or 'Net Invoice Amount
+ Tax' for all previous line before the line where this tax code is used.
For example of calculation, please refer to section Tax Calculation.
a) In the Tax Maintenance screen via [System/General/Countries/Tax Codes]:
When Tax Type='Sales Tax' AND
Transaction Type='Both' then the
'Tax to pay account' and 'Tax to claim
account' is enable
Transaction Type='Sales' then the
'Tax to Pay' is enable
Transaction Type='Purchase' then the
'Tax to Claim' is enable
Note:
-When Tax is claimable you can fill Creditor GL,
-When the tax is not claimable- and therefore cannot be set off to the tax
creditor account,
you can enter a Expense GL or a Neutral GL - (Balance sheet or P/L type)
ii) Withholding Tax
When Tax Type='Withholding Tax' AND
Transaction Type='Both' then the
'Tax to pay account' and 'Tax to claim
account' will be enable
Transaction Type='Purchase' then the
'Tax to Pay' is enable since tax has been Withheld and payable to the tax
authorities.
Transaction Type='Sales' then the
'Tax to Claim' is enable
Note:
-When Withholding Tax is claimable you can fill Creditor GL,
-When the Withholding tax is not claimable- and therefore cannot be set off to
the tax creditor account,
you can enter a Expense GL or a Neutral GL - (Balance sheet or P/L type)
3) Entry Screens affected:
i) Finance/Entries/Sales and Finance/Entries/Purchase
- you can now use up to a maximum of 5 tax codes in a single entry line. The
corresponding Tax Basis and Tax Amount will also be displayed according to the
settings.
Sales/Purchase invoice overview
ii) Finance/Entries/General Journal -you can
now use up to a maximum of 5 tax codes in a single entry line. The corresponding
Tax Basis and Tax Amount will also be displayed according to the settings.
General Journal overview
iii) Finance/Entries/Bank/Cash - This only
applies to Bank to Cost entries, you can now use up to a maximum of 5 tax codes
in a single entry line. The corresponding Tax Basis and Tax Amount will also be
displayed according to the settings.
Bank Journal overview
For Bank to Costs entry, the Tax Code columns will only enable
when the offset GL is either a Revenue/Expense/Neutral GL.
iv) Order/Entries/Sales Orders -you can now use
up to a maximum of 5 tax codes in a single entry line. The corresponding Tax
Basis and Tax Amount will also be displayed according to the settings.
Sales Order view
v) Purchase/Entries/Purchase Orders -you can
now use up to a maximum of 5 tax codes in a single entry line. The corresponding
Tax Basis and Tax Amount will also be displayed according to the settings.
Purchase Order Overview
vi) Invoice/Entries/Invoices -you can now use
up to a maximum of 5 tax codes in a single entry line. The corresponding Tax
Basis and Tax Amount will also be displayed according to the settings.
Sales Invoice Overview
4) Layouts
Layouts for Sales /Purchase orders
and invoices are also amended to cater for the additional Tax codes to be
displayed on the printouts. The total per tax codes will be displayed in the
total block.
i) Sales /Purchase orders Layouts
- all tax codes used would be listed.
ii) invoices Layouts
Sales order layout Overview
5) Tax Calculation
The calculation of tax amounts should always be based on the
basis amount. The sequence of applying the taxes shall be line by line and based
on the sequence the Tax codes has been entered. Examples of tax calculations and
how the additional fields would be filled based on different type of taxes is as
per attachment
Sales Tax
The calculation of Sales Tax amounts is direct application
of the Rates x Basis Amount:
Example :-
Create a Sales Tax with Code 10 (10% with Calculation Basis='Net
Amount')
Create a Sales Tax with Code 19 (19% with Calculation Basis='Net
Amount')
|
Calculation Basis |
Tax code |
|
|
Amounts |
Tax Basis |
|
Calculation |
|
|
|
|
Amounts Excluding Tax |
|
1.000,00 |
|
|
|
|
|
|
|
Net Amount |
10 |
Sales Tax 10% |
10% |
100 |
1.000,00 |
( |
1.000,00 |
x |
10% |
) |
|
Net Amount |
19 |
Sales Tax 19% |
19% |
190 |
1.000,00 |
( |
1.000,00 |
x |
19% |
) |
|
|
|
Total Amount |
|
1.290,00 |
|
|
|
|
|
|
Sales Tax (Tax on Tax)
To calculate tax upon tax, the
sequence of the tax codes determines the calculation he calculation of Sales Tax
amounts. The tax basis of the tax code that has the Calculation basis set to
"Net Amount +Tax" would be calculated as the basis amount + all Tax amount
placed before this tax code.
Example :-
Create a Sales Tax with Code 10 (10% with Calculation Basis='Net
Amount')
Create a Sales Tax with Code 19 (19% with Calculation Basis='Net
Amount+ Tax')
In this example:
the Tax basis of the Tax code 19 would be
calculated as 1000 (Net Amount) +100 (Tax amount from tax code
10)= 1100 and
the Tax amount of tax code 19 would be
calculated as 19% x 1100 = 209.
|
Calculation Basis |
Tax code |
|
|
Amounts |
Tax Basis |
|
Calculation |
|
|
|
|
Amounts Excluding Tax |
|
1.000,00 |
|
|
|
|
|
|
|
Net Amount |
10 |
Sales Tax 10% |
10% |
100 |
1.000,00 |
( |
1.000,00 |
x |
10% |
) |
|
Net Amount + Tax |
19 |
Sales Tax 19% |
19% |
209 |
1.100,00 |
( |
1.100,00 |
x |
19% |
) |
|
|
|
Total Amount |
|
1.309,00 |
|
|
|
|
|
|
Withholding Tax
Withholding taxes is also applied as a percentage of the basis amount.
However, the withholding tax is not added to the basis amount to get the total
amount payable/receivable BUT it is DEDUCTED to derive the total amount
payable/receivable. .
Example:
Create a Withholding Tax with Code 15 (15% with Calculation
Basis='Net Amount')
Create a Withholding Tax with Code 20 (20% with Calculation
Basis='Net Amount')
|
Calculation Basis |
Tax code |
|
|
Amounts |
Tax Basis |
|
Calculation |
|
|
|
|
Amounts Excluding Tax |
|
1.000,00 |
|
|
|
|
|
|
|
Net Amount |
15 |
Sales Tax 10% |
15% |
-150 |
1.000,00 |
( |
1.000,00 |
x |
-15% |
) |
|
Net Amount |
20 |
Sales Tax 19% |
20% |
-200 |
1.000,00 |
( |
1.000,00 |
x |
-20% |
) |
|
|
|
Total Amount |
|
650,00 |
|
|
|
|
|
|
| Main Category: |
Support Product Know How |
Document Type: |
Release notes detail |
| Category: |
Release Notes |
Security level: |
All - 0 |
| Sub category: |
Details |
Document ID: |
07.210.532 |
| Assortment: |
Exact Globe
|
Date: |
10-05-2017 |
| Release: |
|
Attachment: |
|
| Disclaimer |