tax tables

[Derek Atkins]

Hi,

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"Gerard McElroy" <gerard.mcelroy at citadel-fa.ie> writes:

> Gerard McElroy" <gerard.mcelroy at citadel-fa.ie> writes:
>
>> Hi,
>>     Need assistance on posting of VAT on customer invoices.
>>         When I fill out customer invoice and post to nominal ledger, the
> gross amount inclusive of tax
>>     is posted to acct receivable acct and gross amnt posted to sale
> account.  I need to split the entries between nett sale and vat (tax). there
> is no posting entry for vat on sales to nominal accts.
>> I thought posting entries did this automatically. How do I achieve this?
> using v.2.2.9.
>>     I think I have correct settings in tax option & tax table editor.
>
> How did you set up your tax tables?
>
>>         Regards
>>         Gerard
>
>> Please remember to CC this list on all your replies.
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>
> -derek
>
> Hi Derek,
>     Thank you for your email,  I did the following
>         Selected Edit Tab
>         Opened Tax Options, Tax info dialog box displayed
>         Selected Income, then selected 'sales' one level below.
>         Then I highlighted Sched C -> Gross receipts or Sales.
>         I also ticked Tax Related for Tax information in the TFX Category.
>         Closed this Tab.
>  
> Next I selected 'Business' then opened Tab Table Editor.
> In the left hand box I wrote in 21% ( title for the tax rate)
> In the right hand box I have selected Income: Sales

This is your problem.  You're telling GnuCash that when you split off
the Tax you want the Tax Split to go into Income:Sales.  This should be
Liabilities:Tax Collected (or something like that).

>         Closed this Tab.
>  
>         When I create a customer and an invoice, the entries are correct in so
> far has toggling between
>         switching the x marker on and off to show tax inclusive or exclusive
> of the nett sales value.
>     in other words the tax field at the far right is populated depending on
> 'x' selection.
>
>     When I post entry, the account receivable displays values inclusive of tax
>     In the Sales account, the amount displayed is also gross value, rather
> than nett value
>     but there is no separate accounting entry for tax, anywhere.

Right, because you told GnuCash to put the Tax into your Income
account.  When you post the invoice GnuCash will combine all the line
items destined to the Income Account into one Split, and in your case it
includes the Tax.  So that's why everything is going into the Income
account.  You will need to fix the Tax Table, and then you'll need to
unpost the invoice and tell it to update the Tax Tables.

If you do NOT update the tax tables it will continue to use the wrong
(incorrect account) version of the tax table.

>         Hope the above helps ?

It does. You set up the tax table incorrectly.

>             Best regards
>  
>             Gerard

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available