Financial Analysis of Partners
14.2 Statutory Taxes and Chart of accounts
This section deals with statutory taxes and accounts which are legally required from the company: • the taxation structure provided by Open ERP, • the accounts ledgers, • account balance used to produce the income statement and balance sheet, • the different journals general, centralized and detailed, • the tax declaration. Tip: Other declarations In addition to the legal declarations available in the accounts modules, Open ERP supplies declarations based on the functionality in other modules. You can, for example, install the report_intrastat module for intra-stat declarations about sending goods to and receiving goods from other countries.14.2.1 Taxation
You can attach taxes to financial transactions so that you can • add taxes to the amount that you pay or get paid, • report on the taxes in various categories that you should pay the tax authorities, • track taxes in your general accounts, • manage the payment and refund of taxes using the same mechanisms that Open ERP uses for other monetary transactions. Since the detailed tax structure is a mechanism for carrying out governments’ policies, and the collecting of taxes so critical to their authorities, tax requirements and reporting can be complex. Open ERP has a flexible mechanism for handling taxation that can be configured through its GUI or through data import mechanisms to meet the requirements of many various tax jurisdictions. The taxation mechanism can also be used to handle other tax-like financial transactions, such as royalties to authors based on the value of transactions through an account. 170 Setting up a Tax Structure Setup Taxation using Accounting → Configuration → Financial Accounting → Taxes → Taxes. Three main objects are involved in the tax system in Open ERP: • a Tax Case or Tax Code, used for tax reporting, that can be set up in a hierarchical structure so that multiple codes can be formed into trees in the same way as a Chart of Accounts. • a Tax, the basic tax object that contains the rules for calculating tax on the financial transaction it is attached to, and is linked to the General Accounts and to the Tax Cases. A tax can contain multiple child taxes and base its calculation on those taxes rather than the base transaction, providing considerable flexibility. Each tax belongs to a Tax Group currently just VAT or Other . • the General Accounts, that record the taxes owing and paid. Since the general accounts are discussed elsewhere in this part of the book and are not tax-specific, they will not be detailed in this section. You can attach zero or more Supplier Tax and Customer Tax items to products, so that you can account separately for purchase and sales taxes or Input and Output VAT – where VAT is Value Added Tax. Because you can attach more than one tax, you can handle a VAT or Sales Tax separately from an Eco Tax on the same product. Your Tax Declaration Tax Cases are also known in Open ERP as Tax Codes. They are used for tax reporting, and can be set up in a hierarchical structure to form trees in the same way as a Chart of Accounts. To create a new Tax Case, use the menu Accounting → Configuration → Financial Accounting → Taxes → Tax Codes . You define the following fields: Figure 14.7: Definition of Tax Code • Tax Case Name : a unique name required to identify the Case, • Company : a required link that attaches the Case to a specific company, such as the Main Company, • Case Code : an optional short code for the case, • Parent Code : a link to a parent Tax Case that forms the basis of the tree structure like a Chart of Accounts, • Coefficent for parent : choose 1.00 to add the total to the parent account or -1.00 to subtract it, • Description : a free text field for documentation purposes. You can also see two read-only fields: • Year Sum : a single figure showing the total accumulated on this case for the financial year. • Period Sum : a single figure showing the total accumulated on this case for the current financial period perhaps 1 month or 3 months. You will probably need to create two tax cases for each different tax rate that you have to define, one for the tax itself and one for the invoice amount that the tax is based on. And you will create tax cases that you will not link to Tax objects similar to General Account View types just to organize the tree structure. To view the structure that you have constructed you can use the menu Accounting → Charts → Chart of Taxes. This tree view reflects the structure of the Tax Cases and shows the current tax situation. 171 Define Taxes Tax objects calculate tax on the financial transactions that they are attached to, and are linked to the General Accounts and to the Tax Cases. To create a new Tax Case, use the menu Accounting → Configuration → Financial Accounting → Taxes → Taxes . Figure 14.8: Definition of Tax You define the following fields: • Tax Name : a unique name required for this tax such as 12 Sales VAT , • Company : a required link to a company associated with the tax, such as the Main Company, • Tax Type : a required field directing how to calculate the tax: Percent , ‘‘Fixed‘‘ , None or Python Code , the latter is found in the Compute Code field in the Special Computation tab, • Applicable Type : a required field that indicates whether the base amount should be used unchanged when the value is Always or whether it should be processed by Python Code in the Applicable Code field in the Special Computation tab when the value is Given by Python Code , • Amount : a required field whose meaning depends on the Tax Type, being a multiplier on the base amount when the Tax Type is Percent , and a fixed amount added to the base amount when the Tax Type is Fixed , • Include in base amount : when checked, the tax is added to the base amount and not shown separately, • Domain : is only used in special developments, not in the core Open ERP system, • Invoice Tax Account :a General Account used to record invoiced tax amounts, which may be the same for several taxes or split so that one tax is allocated to one account, • Refund Tax Account : a General Account used to record invoiced tax refunds, which may be the same as the Invoice Tax Account or, in some tax jurisdictions, must be separated, • Tax on Children : when checked, the tax calculation is applied to the output from other tax calculations specified in the Childs Tax Account field so you can have taxes on taxes, otherwise the calculation is applied to the base amount on the transaction, • Tax included in Price : when checked, the total value shown includes this tax, • Tax Application : selects whether the tax is applicable to Sale, Purchase or All transactions, • Child Tax Accounts : other tax accounts that can be used to supply the figure for taxation.Parts
» Think Different Materi ERP openerp book v6
» Why this book? Think Different Materi ERP openerp book v6
» Independent Installation on Windows
» Installation on Linux Ubuntu
» Creating the database Database Creation
» Extending Open ERP New OpenERP functionality
» Database creation Think Different Materi ERP openerp book v6
» Preferences toolbar To connect to OpenERP
» Configuring Users Managing partners
» The Configuration Reconfigure wizard
» Installing an application module from the Modules list
» Installing a module with its dependencies
» Installing additional functionality Installing new functionality
» General Features What’s new in OpenERP
» Business Application-related Features What’s new in OpenERP
» Basic Concepts Getting started with OpenERP
» Boost your Sales Getting started with OpenERP
» Manage your Books Getting started with OpenERP
» Drive your Projects Getting started with OpenERP
» Driving your Sales Getting started with OpenERP
» Driving your Purchases Getting started with OpenERP
» Organise your Warehouse Getting started with OpenERP
» Measure your Business Performance Track your Process Flows
» Business Example Basic Settings
» Get your Database Up and Running with Demo Data
» Fit your Needs Think Different Materi ERP openerp book v6
» Configuring Accounts Database setup
» Configuring Journals Configuring the Main Company
» Creating partner categories, partners and their contacts
» Creating products and their categories
» Stock locations Database setup
» Setting up a chart of accounts
» Make a backup of the database
» Purchase Order Driving a Purchase Sales Flow
» Receiving Goods Driving a Purchase Sales Flow
» Invoice Control Driving a Purchase Sales Flow
» Paying the supplier Driving a Purchase Sales Flow
» From Sales Proposal to Sales Order
» Preparing goods for shipping to customers Invoicing Goods Customer Payment
» Terminology What is in it for you?
» Filtering your Partners Contacts Addresses Partner Categories
» Fetchmail Advanced Customer Relations
» Automated Actions Advanced Customer Relations
» Profiling Advanced Customer Relations
» Report Designer Advanced Customer Relations
» Helpdesk Calendars Think Different Materi ERP openerp book v6
» Analyzing Performance Think Different Materi ERP openerp book v6
» Automating actions using rules
» Installation and Configuration Using the e-mail gateway
» Creating and maintaining cases
» Supplier relationship management Think Different Materi ERP openerp book v6
» Establishing the profiles of prospects
» Using profiles effectively Profiling
» Installing the Outlook plugin
» Configuring the Outlook plugin
» Installing the Thunderbird plugin
» Configuring the Thunderbird plugin
» Using the Thunderbird plugin
» Automate your leads with Marketing Campaigns
» Defining a Marketing Campaign in OpenERP Guidelines for creating a campaign
» Customer Receipts Supplier Vouchers
» Draft Invoices Accounting Workflow and Automatic Invoice Creation
» Reconciliation and Payments Accounting Workflow and Automatic Invoice Creation
» Cancelling an Invoice Invoices
» Credit Notes Refunds Invoices
» Managing Bank Statements Accounting Entries
» Manual entry Accounting Entries
» Import Invoices Accounting Entries
» Cash Management Accounting Entries
» Reconciliation Process Accounting Entries
» How to Manage your Payment Orders?
» Financial Analysis of Partners
» Taxation Statutory Taxes and Chart of accounts
» General Ledger and Trial Balance
» The Accounting Journals Statutory Taxes and Chart of accounts
» Management Indicators Company Financial Analysis
» Good Management Budgeting Company Financial Analysis
» The Accounting Dashboard Company Financial Analysis
» Using a Preconfigured Chart of Accounts Creating a Chart of Accounts
» Payment Terms Opening Entries
» Case 1: Industrial Manufacturing Enterprise
» Case 2: Law Firm To each enterprise its own Analytic Chart of Accounts
» Case 3 : IT Services Company
» Setting up the Chart of Accounts
» Creating Journals Putting Analytic Accounts in Place
» Integrated with General Accounting
» Manual Entries Analytic Entries
» Analysis per account Financial Analysis
» Key indicators Financial Analysis
» Management of staff Managing Human Resources
» Contract Management Managing Human Resources
» Entering timesheet data Timesheets
» Managing by department Timesheets
» An integrated process Employee Expenses
» Recruitments Hire New People
» Assessments Inspire your People
» Holiday Management Inspire your People
» Fixed Price contracts Managing Service Contracts
» Cost-reimbursement contracts Managing Service Contracts
» Fixed-price contracts invoiced as services are worked
» Contracts limited to a quantity
» Creating Projects and Related Tasks
» Managing tasks Project Management
» Invoicing Tasks Project Management
» Priority Management Project Management
» Delegate your Tasks Project Management
» Project Phases Long Term Project Planning
» Scheduling Long Term Project Planning
» Planning by time or by tasks?
» Not everything that is urgent is necessarily important Organizing your life systematically
» Understanding Double-Entry Stock Management
» Product Types From Supplier to Customer
» Procurement Methods – Make to Stock and Make to Order Supply Methods
» Units of Measure From Supplier to Customer
» Receipt of a Supplier Order by Purchase Order
» Receipt of a Supplier Order by Product Customer Delivery
» Customer Delivery by Product
» Stock Locations Basic Logistics Configuration
» Location Types Basic Logistics Configuration
» Location Addresses Basic Logistics Configuration
» Accounting Valuation in Real Time
» Linked locations Basic Logistics Configuration
» Structuring locations Basic Logistics Configuration
» Handling Customer Orders Basic Logistics Configuration
» Linked Production Basic Logistics Configuration
» Push Flows Logistics Configuration in a Multi-Company Environment
» Pull Flows Logistics Configuration in a Multi-Company Environment
» Stock Rental Locations Import Export
» Automatic Procurement Minimum Stock Rules
» Stock Moves Management of Lots and Traceability
» Lots Management of Lots and Traceability
» The different journals Management by Journal
» Using the journals Management by Journal
» Requirements Calculation Scheduling Just in Time
» Planning Managing Partial Deliveries Receiving Supplier Products
» Manual Data Entry of Goods Receipt
» Confirming pre-generated Goods Receipt Documents
» Confirmation by Selecting Products Waiting Product Routing
» Management of production Think Different Materi ERP openerp book v6
» Configurable Bills of Materials
» Manufacturing Think Different Materi ERP openerp book v6
» The customer order Workflow for complete production
» Producing an Intermediate Product
» Manufacture of finished product Delivery of product to the customer
» Invoicing at delivery Workflow for complete production
» Security days Calculation of lead times
» Definition of concepts Operations
» Routing Impact on the production order
» Work operations Management of operations
» Subcontracting manufacture Events and barcodes
» Scheduling Treatment of exceptions
» Entering data for a new repair Repair workflow
» Invoicing the repair Management of repairs
» Manual procurement Management of waste products and secondary products Sales Quotations
» Packaging Think Different Materi ERP openerp book v6
» Alerts Think Different Materi ERP openerp book v6
» Order Configuration Control Deliveries and Invoicing
» Picking Mode Control Deliveries and Invoicing
» Tariff Grids Management of Carriers
» Delivery Modes Management of Carriers
» Delivery based on Ordered Quantities
» Margins by Product Keep Track of your Margins
» Margins by Project Keep Track of your Margins
» Creating Price Lists Example
» Rebates at the End of a Campaign
» Open Orders Layout Templates
» Price Request from the Supplier
» Goods Receipt All the Elements of a Complete Workflow
» Control based on Goods Receipt
» Tenders Price Revisions All the Elements of a Complete Workflow
» Elementary Statistics Purchase Analysis
» Analytic Accounts Think Different Materi ERP openerp book v6
» Examples of Process Process Integration in the Management System
» Using processes effectively Workflows and User Processes
» Defining your own user processes
» The importance of good document management
» Classic document management solutions
» Getting Started The OpenERP Solution
» Internal and External Access using FTP
» Mapping between OpenERP Resources and Directories
» Standardizing Structures Searching for documents Working with users’ changes Version Management
» OpenERP Server Setup Think Different Materi ERP openerp book v6
» DNS Server Setup Think Different Materi ERP openerp book v6
» SSL Setup Think Different Materi ERP openerp book v6
» Calendars on iPhone Think Different Materi ERP openerp book v6
» Prerequisites Calendars on Android
» How to configure? Calendars on Android
» Calendars in Evolution Think Different Materi ERP openerp book v6
» Prerequisites Calendars in SunbirdLightning
» Configuration Calendars in SunbirdLightning
» Creating a Configuration Module
» Changing the menu Configuring the menu
» Personalizing the welcome page for each user Assigning default values to fields
» Changing the terminology Configuring the menu
» User Login Think Different Materi ERP openerp book v6
» Managing access rights Think Different Materi ERP openerp book v6
» Modification history Groups and Users
» Configuring workflows and processes
» Managing statistical reports Configuring reports
» Managing document templates with OpenOffice.org
» Creating common headers for reports
» Exporting Open ERP data to CSV
» Importing CSV data to Open ERP
» The CSV format for complex database structures
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