TimingOfVatBooking/User Guide
USER GUIDE DOCUMENT FOR TIMING OF VAT BOOKING
Abstract and Justification
“Timing of VAT Booking ” is a new OB extension module which allows VAT booking at the time of Settlement/Payment booking rather than at the time of Invoice booking.
This feature is required in Germany, but is also generically useful in other countries.
User Goals
Timing of VAT Booking module will allow the end-user to book the "Sales" VAT tax at the time of "Settlement/Payment In" booking rather than at the time of "Sales Invoice" booking.
Above means that:
- The sales invoice booking will just imply that the corresponding VAT is booked in a transitory account
- The VAT will be reversed from the transitory account and booked to the "Tax Due" VAT account at the time of booking the Settlement (old flow) or Payment In (Advanced Payable & Receivable management flow)
Above behaviour must be setup at Organization level.
Prerequisites
Since version 1.1.0, the Timing of VAT module depends on the Advanced Payables and Receivable functionality, so take into account that this module will be installed when installing the Timing of VAT module 1.1.0 or higher
Installation of the Timing of VAT Booking feature
Follow below steps to get Booking Control module installed in your system:
- Login as Openbravo/Openbravo
- Change the role to “System Admin” by clicking the button “User Info”.
- Go to General Setup -> Application -> Module Management.
- Click the tab Add Modules. You can either:
- Browse File System and browse the obx file and click continue.
- or search for the module in the Central Repository using the search button and click on install
- Click Install Now.
- To Verify, as "System Admin" navigate to "Application Dictionary // Module", once there check that the new module "Timing of VAT" is shown as active in there.
Configuration
It is now possible to setup an Organization in order to get that the VAT is booked at settlement/payment, as described below:
- Navigate to the application path: "General Setup || Enterprise || Organization || Organization"
- Switch on the new check-box "Post VAT In Settlement" for the Organization, as shown in the screen below.
- If "Post VAT in settlement" check-box is switched on, the VAT postig will take place at sales settlement/payment booking
- If "Post VAT in settlement" check-box is switched off, the VAT postig will take place at sales invoice booking
New Accounting Templates
Several new Accounting Templates has been created to overide the Openbravo's default accounting behaviour for:
- Invoices, called Accounting Engine - Invoice, implemented by the Java class org.openbravo.obtvb.process.DocInvoiceVatPosting
- Payment IN and Payment OUT, called Accounting Engine - Financial Payment, implemented by the Java class org.openbravo.obtvb.process.DocFINPaymentVatPosting
- Reconciliations, called Accounting Engine - Financial Reconciliations, implemented by the the Java class org.openbravo.obtvb.process.DocFINReconciliationVatPosting
- Transactions, called Accounting Engine - Financial Transactions, implemented by the Java class Accounting Engine - Financial Transactions
- Settlements, called Accounting Engine - Settlement, implemented by the Java class org.openbravo.obtvb.process.DocPaymentVatPosting
Take into account that if you use the new Advanced Payables and Receivables flow, the Accounting Engine - Settlement will not be used because Settlements are not used anymore when the Advanced Payables and Receivables. Instead of it, the Financial Payments, Reconciliations and Transactions are used.
Accounting Schema table mapping with Accounting Template to override the posting functionality
The above accounting templates must be mapped in your Accounting Schema(s) for the following accounting tables:
Doing so, the default Openbravo's accounting engine is replaced by the Timing of VAT, allowing the system to manage the VAT temporary account entries.
Default Accounts for Timing of VAT Booking
The Default Account information for the Timing of VAT Booking must be set up a the Application Path.
- Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Defaults
- The Transitory Account will therefore be used when creating a new Tax Rate
Besides, at Tax Rate level, it is required to set up the corresponding Transitory account for existing tax rates, at the application path:
- Financial Management || Accounting || Setup || Tax Rate || Tax >> Accounting
How it works?
Timing of VAT booking module main goal is to get below detailed behaviour:
- When posting a sales invoice, the VAT amount is posted to the setup "Transitory account"
- When the sales invoice is paid (either from a settlement in the old payment flow; or from a payment, financial transaction or reconciliation in the new APRM flow), the VAT amount is moved from the "Transitory" account to setup "Tax Due" account.
For getting above behaviour working, three requirements must be fulfilled:
- The "Accounting Templates" for the Accounting Schema(s) must be properly defined, as it was explain in a previous section
- The Organization must be set as "Post VAT in settlement" = Yes, in the Organization window
- There must be a "Transitory account" setup for the Tax Rate, in the Tax Rate window - Accounting tab
User Scenario
The scenario detailed below apply only to Sales Transactions.
A given Organization is setup to get the VAT booking at settlement/payment in booking. In this example:
- the VAT has the "48000" account setup as "Transitory" account
- the VAT has the "47700" account setup as "Tax Due" account
A sales invoice is created, completed and post in the system by having below information details:
- Total Amount: 40.60 €
- VAT Amount: 5.60 €
The accounting entry will look like as shown in the screen below (Please not that the account 48000 has been configured as the transitory VAT account):
Later on end-user gets the corresponding "Payment In" booked for a total amount of 40.60€
- Total Amount: 40.60€
The accounting entry will look like as shown in the screen below (Please not that the account 47700 has been configured as the Tax Due VAT account):
