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https://issues.apache.org/jira/browse/OFBIZ-9492?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=16106479#comment-16106479
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Paul Foxworthy commented on OFBIZ-9492:
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Hi [~deepak.nigam], [~jacopoc], [~pfm.smits]
Jacopo did some cleaning up of the accounting transaction types in 2007
(https://github.com/apache/ofbiz/commit/4d8ab57b0173a98e82c23268708c0c9f4247c3a7)
I see in /applications/accounting/data/AccountingTypeData.xml that
AcctgTransType values of SALES_INVOICE, PURCHASE_INVOICE and CUST_RTN_INVOICE
have a comment saying they should be replaced with "SALES". I presume the
thinking is that exactly the same set of information is a purchase invoice from
the perspective of the buyer, and a sales invoice from the perspective of the
seller. If the two parties are both using OFBiz, it could even be exactly the
same entity.
I was considering using these three values in the revision of the
TaxAuthorityGlAccount entity. Now I wonder the relationship should be to
InvoiceType instead. There are other situations where we may incur and pay a
tax obligation beyond when we raise and receive invoices, such as income tax.
However, in those situations you would just directly set the GL accounts for a
payment. Does anyone see a problem with using InvoiceType?
Cheers
Paul
> Tax Authorities need two GL accounts for sales and purchases
> ------------------------------------------------------------
>
> Key: OFBIZ-9492
> URL: https://issues.apache.org/jira/browse/OFBIZ-9492
> Project: OFBiz
> Issue Type: Improvement
> Components: accounting
> Affects Versions: Trunk
> Reporter: Paul Foxworthy
> Assignee: Paul Foxworthy
> Labels: accounting, vat
>
> In jurisdictions with Value Added Tax, you need to track tax you have paid on
> purchases, and tax you have collected with sales. When you report to a tax
> authority, you pay them the difference between the two, i.e. you pay tax on
> the value added, not on your inputs.
> OFBiz has an entity, TaxAuthorityGlAccount (TAGLA), which currently assumes
> the GL account is for a sale.
> We need to extend OFBiz so it is possible to find two GL accounts for a tax
> authority, one for sales and one for purchases.
> I propose:
> - Define a new Enumeration for the direction of a transaction. I suggest
> calling the Enumeration TAGLADIR, with two values TAGLADIR_INCOMING
> and TAGLADIR_OUTGOING.
> We could reuse an existing indication of the direction of a transaction,
> for example the GlAccountClassIds INCOME and EXPENSE. However, when we receive
> income from a sale, we would incur a tax *liability*, and the GL account for
> that
> would be a liability account. So I think it would be less confusing to have a
> separate enum here that's just for TAGLA.
> - add a new attribute to the TaxAuthorityGlAccount entity for the direction
> of the transaction.
> The new attribute should be included in the primary key.
> - Add a new service in TaxAuthorityServices named getTaxAuthorityGlAccountId
> which
> looks up a TAGLA given primary key values, including the direction
> - There are two places in TaxAuthorityServices that would call
> getTaxAuthorityGlAccountId: getTaxAdjustments and getItemTaxAdjustments, one
> for orders, and the other for invoice item types. The direction can be
> inferred from the order type or the invoice item type
> - createAcctgTransForPurchaseInvoice and
> createAcctgTransForCustomerReturnInvoice
> should use getTaxAuthorityGlAccountId
> - createAcctgTransactionForSalesInvoice should be rewritten to use
> getTaxAuthorityGlAccountId.
> I am working on a patch to do this, but I'd like your thoughts on my proposal
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