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How to generate VAT report based on payment ?

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Julien Mousseaux

VAT report based on payment is the basic report needed in few countries. Where to generate it in OpenERP v7 ?

It appears to be hidden in account.view_account_vat_declaration.

<!--- <field name="based_on"/>--> <!-- the option based_on 'payment' is probably not fully compliant with what the users understand with that term. So, currently, it's seems better to remove it from the view to avoid further problems -->

Is this feature lacking in OpenERP 7 ?

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eLBati
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This feature lacks in OpenERP.

The account_vat_on_payment module should handle the VAT on payment treatment, in general. See the how-to

It works on 6.1, for now.

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Ahmet Altinisik
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When translating V7 I see strings about VAT based on payments. Did you checked V7?

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eLBati
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Not in depth. But reading the cited comment "the option based_on 'payment' is probably not fully compliant with what the users understand with that term. So, currently, it's seems better to remove it from the view to avoid further problems", I think not much has been done.

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eLBati
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See also the funding campaign for v7 version at http://igg.me/at/openerp-7-account-vat-on-payment/x/2728973

Lorenzo, you should not do a funding campaign based on this as its not a good implementation. (a big hack that does not reflect the way you have to handle VAT on payments in most countries). Check my answer bellow for more info.

I would not use the proposed above modules as they don't handle accounting entries legally. 1/ you must post invoice entries when you receive the invoice, not when it's paid (in the real CoA, not in a shadow one), 2/ VAT on payments must work for partial payments or payments without invoices. 3/ It does not produce the right accounting entries.

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eLBati
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See my comments below

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OpenERP does not support yet VAT on payments if you use bank statements. But it can easily be handled if you record your bank statement in journals directly rather than the bank statement view.

Here is how most countries handle VAT on payments:

When doing an invoice (e.g. in Belgium, 21%):

401   Receivables                  121
700   Income Account                         100
44585 TVA à régulariser                       21

When registering a partial payment:

401   Receivables                            121
550   Bank Account                 121

44585 TVA à régulariser             21
44574 TVA collectée                           21

So, you have to define two taxes. (one for the invoice, one for the payment)

Please note that it's not related at all with the reconciliation process. If you receive a payment without having done the invoice (or an invoice is sent but not reconciled, or if the payment is partial), you still have to pay the VAT you received from your customer.

So, the implementation in OpenERP is quite simple: just add a Tax many2one field in the bank statement line.

If someone does such an implementation, we would like to integrate it in trunk, as part of the core modules (and we need a configuration checkbox to activate this feature.)

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michel Guénard
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In France, The VAT on payment is a fiscal option that has to be validated by the tax authorities - at the creation time of the company in most cases - as it is considered as a derogation to the standard VAT system.

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eLBati
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"you must post invoice entries when you receive the invoice, not when it's paid"

Actually, under certain treatments, you don't post entries at invoice confirmation. Check the Swiss accounting law at admin.ch Anyway, our module is configurable, so, if you want to post entries in the real CoA, it's just matter of configuration.

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eLBati
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That is indeed the Italian case, where you usually record real entries when confirming invoice (our how-to was addressed to Swiss customers mainly).

"VAT on payments must work for partial payments or payments without invoices"

Our module does.

"It does not produce the right accounting entries"

Well, we still have to agree on what "right accounting entries" means.

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eLBati
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"So, the implementation in OpenERP is quite simple: just add a Tax many2one field in the bank statement line"

I think this implementation can't cover every use case. We described 7 examples. Again, "shadow" accounts were used for Swiss accounting: read 'TVA à régulariser' instead of 'VAT (shadow)' and so on. How can you compute VAT amount if one bank statement pays several invoices with foreign currency, with different currency rates and even with discount?

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eLBati
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Moreover, if you only use bank statements, how can you correctly record VAT entries when you receive cash payments?

The main value of our module is in the computation part, more than in the used accounts, as they are configurable.

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Krzysztof Matusik
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Hello Lorenzo, in Poland we only treat VAT specially regarding vat on payment, so this should look as Fabien has shown in his example. Is it possible to configure your modules to not make additional moves on non-tax accounts, only for taxes? (I guess just cutting out some lines out of your code?)

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eLBati
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Hello, just want to let you know that a new version of the module, also handling bank statements, is available at https://github.com/OCA/account-payment/pull/54

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Fred Saunier
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Hi,

I am reviving this thread on how to generate a VAT tax report based on payments in OpenERP v7, because it is now something mandatory in Belgium since Jan. 2014 for services.

I have been using OpenERP v5 for a number of years, and there, I can choose between creating the report either based on Invoices or on Payments. Up until now, I was generating the report based on Invoices, and now I started generating it based on Payments. In version 5, again, it works somewhat. Indeed, invoices that have received a payment are taken into account in the report, but in the period of the invoice, not that of the payment, which is wrong.

Eg : Invoice issued Jan. 15, paid Mar. 15 - Should be on the March tax report, which it isn't. It is present on the Jan. report if, and only if, it is paid. That is wrong.

I am experimenting with OpenERP v7. In this version, when is this option going to be available? It is now mandatory for us in BE -- ie: for services, vat exigibility is based on payments; for delivery of goods, vat exigibility is now based on either date of delivery or date of payment (whichever comes first).

Thank you,

Fred

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