[GNC] automatically account for gst on random purchases

[Michael or Penny Novack]

On 6/18/2023 7:43 PM, flywire wrote:
>> In looking for/expecting and automated solution you are thinking one should
> be reasonable. ...I live in the US [which has complex GST]
>
> Yet surely it is reasonable for the automated GST functionality for accrual
> accounting to apply to cash accounting. Even USA GST has rules, so it could
> be automated.

Yes indeed, sales tax(es) can be computed automatically even here in the 
US. But this is typically done by a POS system at the register and the 
result is fed to the general ledger system.

Notice that "point" in "point of sales. That's because the correct tax 
amount depends on the point of sale (the where). The device (that thing 
that used to be just a "cash register) "knows" where it is. The product 
code is scanned in (or hand entered) and that is used to determine if 
taxable and at what rate. that gets sent to general ledger. Also that a 
widget with that code sold informs the inventory system to deduct one 
(and also send the "cost of good sold" to general ledger. Let's say you 
have  a business located near Port Jarvis with three shops, one in NY, 
one in NJ, and one in PA (the three states meet there). The POS sales in 
each of those shops would be sending DIFFERENT tax amounts to general 
ledger.

You are asking general ledger to do all of this (gnucash is a general 
ledger system). In that case MORE INFORMATION would be needed as part of 
each transaction. Not just things like date, amount, etc. but "legal 
location for this transaction" << for example, the location of the 
customer if a remote sale* >>

Michael D Novack

* BTW, I have yet to do business with any remote seller that does this 
correctly. They tend to use ZIP code, but ZIP code is NOT a reliable 
indication of the legal location of the address. Postal delivery routes 
do not respect state boundaries let alone more local political 
boundaries. My working days were spent in a financial industry where 
"contract state" WAS collected separately from "mail state" << because 
it was very important to be sure what state's laws would apply to the 
contract >> In other words, remote sellers really should "look up on a 
map" (mapping software) where that mailing address is actually located 
and not assume must be the same state/city as the PO that delivers mail 
to that address.