96 lines
3.9 KiB
ReStructuredText
96 lines
3.9 KiB
ReStructuredText
=======================
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Manage cash basis taxes
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=======================
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The cash basis taxes are due when the payment has been done and not at
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the validation of the invoice (as it is the case with standard taxes).
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Reporting your income and expenses to the administration based on the
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cash basis method is legal in some countries and under some conditions.
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Example : You sell a product in the 1st quarter of your fiscal year and
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receive the payment the 2nd quarter of your fiscal year. Based on the
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cash basis method, the tax you have to pay to the administration is due
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for the 2nd quarter.
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How to configure cash basis taxes ?
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------------------------------------
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You first have to activate the setting in
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:menuselection:`Accounting --> Configuration --> Settings --> Allow Tax Cash Basis`.
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You will be asked to define the Tax Cash Basis Journal.
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.. image:: media/cash_basis_taxes01.png
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:width: 5.04688in
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:height: 0.79688in
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:align: center
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Once this is done, you can configure your taxes in
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:menuselection:`Accounting --> Configuration --> Taxes`.
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At first set the proper transitional accounts to post taxes
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until you register the payment.
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.. image:: media/cash_basis_taxes02.png
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:align: center
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In the *Advanced Options* tab you will turn *Tax Due* to
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*Based on Payment*. You will then have to
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define the *Tax Received* account in which to post the tax amount
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when the payment is received and the *Base Tax Received Account*
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to post the base tax amount for an accurate tax report.
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.. image:: media/cash_basis_taxes03.png
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:align: center
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What is the impact of cash basis taxes in my accounting ?
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----------------------------------------------------------
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Let’s take an example. You make a sale of $100 with a 15% cash basis
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tax. When you validate the customer invoice, the following entry is
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created in your accounting:
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+-----------------------------+---------------------------+
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| Customer Invoices Journal | |
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+=============================+===========================+
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| **Debit** | **Credit** |
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+-----------------------------+---------------------------+
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| Receivables $115 | |
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+-----------------------------+---------------------------+
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| | Temporary Tax Account $15 |
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+-----------------------------+---------------------------+
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| | Income Account $100 |
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+-----------------------------+---------------------------+
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A few days later, you receive the payment:
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+----------------+--------------------+
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| Bank Journal | |
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+================+====================+
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| **Debit** | **Credit** |
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+----------------+--------------------+
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| Bank $115 | |
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+----------------+--------------------+
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| | Receivables $115 |
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+----------------+--------------------+
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When you reconcile the invoice and the payment, this entry is generated:
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+--------------------------+----------------------------+
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| Tax Cash Basis Journal |
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+==========================+============================+
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| **Debit** | **Credit** |
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+--------------------------+----------------------------+
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| Temporary Tax Account $15| |
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+--------------------------+----------------------------+
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| | Tax Received Account $15 |
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+--------------------------+----------------------------+
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| Income Account $100 | |
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+--------------------------+----------------------------+
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| | Income Account $100 |
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+--------------------------+----------------------------+
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.. tip::
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The last two journal items are neutral but they are needed to insure
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correct tax reports in Odoo with accurate base tax amounts.
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We advise to use a default revenue account.
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The balance of this account will then always be at zero.
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