Divesh Dutta created OFBIZ-7012:
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Summary: VAT tax are not recorded as separate line items in
Invoice for products with VAT tax included in their price
Key: OFBIZ-7012
URL: https://issues.apache.org/jira/browse/OFBIZ-7012
Project: OFBiz
Issue Type: Bug
Components: accounting, order
Reporter: Divesh Dutta
Assignee: Divesh Dutta
In countries like UK VAT system works. So in VAT system, VAT taxes are included
in product's price. So OFBiz have support of VAT tax where you can include VAT
in product's price itself. Here is the example data we create to enable VAT
calculations:
<Party partyId="GB_TA" partyTypeId="PARTY_GROUP" statusId="PARTY_ENABLED"/>
<PartyGroup partyId="GB_TA" groupName="Great Britain Tax Authority"/>
<PartyRole partyId="GB_TA" roleTypeId="TAX_AUTHORITY"/>
<TaxAuthority taxIdFormatPattern="\d{2}\-\d{7}|\d{3}\-\d{2}\-\d{4}"
taxAuthGeoId="GBR" taxAuthPartyId="GB_TA"/>
<TaxAuthorityRateProduct taxAuthorityRateSeqId="6002" description="Standard
E-Commerce Great Britain Tax Rate" fromDate="2016-01-01 00:00:00.0"
productStoreId="9000" taxAuthGeoId="GBR" taxAuthPartyId="GB_TA"
taxAuthorityRateTypeId="VAT_TAX" taxPercentage="20.00" />
<ProductPrice currencyUomId="GBP" fromDate="2012-07-03
00:00:00.0"price="139.000" productId="GZ-2644" productPricePurposeId="PURCHASE"
productPriceTypeId="DEFAULT_PRICE" productStoreGroupId="_NA_"
taxAuthGeoId="GBR" taxAuthPartyId="GB_TA" taxInPrice="Y" />
When invoices are created, tax amount included in product's price is not
separated in new invoice line item. And when general ledger postings are done,
then tax amount is not posted in Liability account. So due to this
organizations have no way to figure out how much tax is to be paid to tax
authority.
Ideally, product's actual price (without VAT) should be recorded in revenue
account and tax should be recorded in liability account.
For doing this, when invoice is created, VAT amount should be separated and
created as new line item.
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