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How to configure the VAT tax settings so that we can generate a tax report with whole sales amount and cash discount displayed separately?

  • 31 May 2023
  • 4 replies
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Hi guys,

Consider this case below.

If the credit terms for customers is “3% discount in 10 days, net in 30 days”, and we made a sale to a customer of $100, with a VAT rate of 10%. The customer paid within 10 days, and I’m trying to generate a tax report looks like this:

Total sales: $100

Cash discount: $3 (-$3 is also ok)

Total taxable amount: $97

Total tax amount: $9.7

But according to what I have tested on Acumatica, it seems like the above couldn’t be achieved. I tried to use the cash discount feature, and the outcome looks like this:

Total sales: $100

Total taxable amount: $100

Total tax amount: $10

The total tax amount here isn’t even correct (should be $9.7).

I also thought of recording the cash discount in a separate line in the invoice, but we wouldn’t know whether the customer takes the cash discount or not while recording the invoice. And once the invoice is released, I assume there’s no other way to add a line for cash discount.

So any better ideas on this case? Thanks in advance.

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Best answer by Laura02 2 June 2023, 11:15

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Hello @shuang57 ,

Can you please check the settings on your VAT?  What setting are you using for Cash Discount in Taxes screen? I think you need Reduces Taxable Amount on Early Payment.

 

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Hi @Laura02 Thanks for the advice! By choosing Reduces Taxable Amount on Early Payment on tax settings, it does solve part of the problem. Now the total tax amount would be calculated as $9.7 instead of $10. It’s just the tax report, now it looks like below right?

Total sales: $97

Total taxable amount: $97

Total tax amount: $9.7

 

But is there any other settigns I could change so that I can separate the total sales and cash discount amount? I need the report to look like this:

Total sales: $100

Cash discount: $3 (-$3 is also ok)

Total taxable amount: $97

Total tax amount: $9.7

 

Is it possible to change the tax category when applying the VAT credit memo? Or other options? Thanks a bunch.

 

Regards,

Shuang.

Badge +16

Hello @shuang57 ,

When we design the tax reports in the User Interface, we have only two choices, to show Taxable Amount or to show Tax Amount.  I agree with you - we need to have a choice to show tax discounts and/or merchandise discounts in the tax reports.

When I clicked to Edit the Tax Details Report, and I expanded each table, I could not find where merchandise discount amount, tax discount amount, or taxable amount before/after discount are available to add to the report.

I think the next step is for you to add your idea to the IDEA section of this  Community.  Include copies or link to the government regulations that require discount in tax reporting. Including government requirements will help move the solution to completion, so people will vote for your idea and Acumatica will enhance the software. 

Your VAR may be able to help you with custom reports in the meantime. Others in the community may add more ideas to your post. Good luck and Thank you!

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Hi @Laura02 many thanks for the help and advice. I’ll create an idea out of it.

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