[jira] [Updated] (OFBIZ-9492) Tax Authorities need two GL accounts for sales and purchases

["Paul Foxworthy (JIRA)" <ji...@apache.org>]

     [ https://issues.apache.org/jira/browse/OFBIZ-9492?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]

Paul Foxworthy updated OFBIZ-9492:
----------------------------------
    Description: 
In jurisdictions with Value Added Tax, you need to track tax you have paid on purchases, and tax you have collected with sales. When you report to a tax authority, you pay them the difference between the two, i.e. you pay tax on the value added, not on your inputs.

OFBiz has an entity, TaxAuthorityGlAccount (TAGLA), which currently assumes the GL account is for a sale.

We need to extend OFBiz so it is possible to find two GL accounts for a tax authority, one for sales and one for purchases.

I propose:
 - add new attributes to the TaxAuthorityGlAccount entity: acctgTransTypeId(one of 

The new attribute should be included in the primary key.
 - Add a new service in TaxAuthorityServices named getTaxAuthorityGlAccountId which
 looks up a TAGLA given primary key values, including the direction

 - There are two places in TaxAuthorityServices that would call getTaxAuthorityGlAccountId: getTaxAdjustments and getItemTaxAdjustments, one for orders, and the other for invoice item types. The direction can be inferred from the order type or the invoice item type

 - createAcctgTransForPurchaseInvoice and createAcctgTransForCustomerReturnInvoice
 should use getTaxAuthorityGlAccountId

 - createAcctgTransactionForSalesInvoice should be rewritten to use getTaxAuthorityGlAccountId.

I am working on a patch to do this, but I'd like your thoughts on my proposal

  was:
In jurisdictions with Value Added Tax, you need to track tax you have paid on purchases, and tax you have collected with sales. When you report to a tax authority, you pay them the difference between the two, i.e. you pay tax on the value added, not on your inputs.

OFBiz has an entity, TaxAuthorityGlAccount (TAGLA), which currently assumes the GL account is for a sale.

We need to extend OFBiz so it is possible to find two GL accounts for a tax authority, one for sales and one for purchases.

I propose:

- Define a new Enumeration for the direction of a transaction. I suggest
calling the Enumeration TAGLADIR, with two values TAGLADIR_INCOMING
and TAGLADIR_OUTGOING.

We could reuse an existing indication of the direction of a transaction,
for example the GlAccountClassIds INCOME and EXPENSE. However, when we receive
income from a sale, we would incur a tax *liability*, and the GL account for that
would be a liability account. So I think it would be less confusing to have a
separate enum here that's just for TAGLA.

- add a new attribute to the TaxAuthorityGlAccount entity for the direction of the transaction.

The new attribute should be included in the primary key.

- Add a new service in TaxAuthorityServices named getTaxAuthorityGlAccountId which
looks up a TAGLA given primary key values, including the direction

- There are two places in TaxAuthorityServices that would call getTaxAuthorityGlAccountId: getTaxAdjustments and getItemTaxAdjustments, one for orders, and the other for invoice item types. The direction can be inferred from the order type or the invoice item type

- createAcctgTransForPurchaseInvoice and createAcctgTransForCustomerReturnInvoice
should use getTaxAuthorityGlAccountId

- createAcctgTransactionForSalesInvoice should be rewritten to use getTaxAuthorityGlAccountId.

I am working on a patch to do this, but I'd like your thoughts on my proposal



> Tax Authorities need two GL accounts for sales and purchases
> ------------------------------------------------------------
>
>                 Key: OFBIZ-9492
>                 URL: https://issues.apache.org/jira/browse/OFBIZ-9492
>             Project: OFBiz
>          Issue Type: Improvement
>          Components: accounting
>    Affects Versions: Trunk
>            Reporter: Paul Foxworthy
>            Assignee: Paul Foxworthy
>            Priority: Major
>              Labels: accounting, vat
>
> In jurisdictions with Value Added Tax, you need to track tax you have paid on purchases, and tax you have collected with sales. When you report to a tax authority, you pay them the difference between the two, i.e. you pay tax on the value added, not on your inputs.
> OFBiz has an entity, TaxAuthorityGlAccount (TAGLA), which currently assumes the GL account is for a sale.
> We need to extend OFBiz so it is possible to find two GL accounts for a tax authority, one for sales and one for purchases.
> I propose:
>  - add new attributes to the TaxAuthorityGlAccount entity: acctgTransTypeId(one of 
> The new attribute should be included in the primary key.
>  - Add a new service in TaxAuthorityServices named getTaxAuthorityGlAccountId which
>  looks up a TAGLA given primary key values, including the direction
>  - There are two places in TaxAuthorityServices that would call getTaxAuthorityGlAccountId: getTaxAdjustments and getItemTaxAdjustments, one for orders, and the other for invoice item types. The direction can be inferred from the order type or the invoice item type
>  - createAcctgTransForPurchaseInvoice and createAcctgTransForCustomerReturnInvoice
>  should use getTaxAuthorityGlAccountId
>  - createAcctgTransactionForSalesInvoice should be rewritten to use getTaxAuthorityGlAccountId.
> I am working on a patch to do this, but I'd like your thoughts on my proposal



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