[ILUG] Accounting packages

[Michael Kennedy]

Colin,

 > If what you refer to as Cash Accounting is another term for
 > "Commitment Accounting", then Adempiere can do cash accounting... it's
 > very popular in South America where Adempiere is also very popular.
 > Now I know it's there but I've never enabled it so I am unsure how the
 > VAT functionality is effected, I can only assume it correctly
 > addressed.

No, "Commitment Accounting" sounds like something else...

By "Cash Accounting", my understanding of the mechanism is as follows:
   - Sales Invoices (and other debits) show VAT, as usual, per 
line-item, and a VAT summary in the footer. However, these VAT elements 
are not yet released for payment to Revenue.
   - Similarly for Credit Notes, Discounts, and other Credits. They show 
VAT, but are not yet refundable by Revenue.
   - The line-items in the credits are allocated against the appropriate 
line-items in the debits, thereby reducing the VAT liability on the 
debits, and clearing the VAT elements of the credits. Matching lines 
should, obviously, be at the same VAT-Rate. I don't remember what should 
happen if the rates differ - because of errors, or because of a genuine 
change in VAT-Rate between the time of the debit and the time of the credit.
   - None of the above activities release any VAT for payment to (or 
collection from) Revenue.
   - Finally, the customer PAYS some money! Then, that has to be 
assigned (manually or automatically) against the appropriate debits, 
thereby releasing the remaining VAT on the debits, whereby it's payable 
to Revenue. The VAT-Rate is the one on the debit, and the VAT-Period is 
the later of the date of the debit or payment.

The objective is that the org does not declare/pay the VAT (on sales), 
until the money has been received. Or, say in a POS environment, the VAT 
is payable based on the takings in the Till!

The VAT on Purchases (in Ireland) is not affected - it still applies on 
the Purchase invoices, and does not depend on whether they have been 
paid or not. Some jurisdictions do allow VAT or purchases to be reported 
on a "cash" basis.

Whew!!

   - Mike


 > On 17 October 2011 23:20, Michael Kennedy<Info at kennedysoftware.ie> 
wrote:
 >>>>     - Many of the major systems clearly state that they do not support
 >>>> VAT.
 >>>>     - Some suggest that their tax handling can be configured to handle
 >>>> VAT - but that might be optimistic!
 >>>>     - And, of those with good VAT support, some don't support the 
"cash
 >>>> accounting" VAT schemes, and that eliminates some more candidates.
 >>>
 >>> Looks like I'm stuck with "silly old pencils", to quote the
 >>> iar-thaoioseach
 >>
 >> Still on the VAT:
 >>
 >>   - I'm not aware of any FOSS system that supports "Cash Accounting" 
VAT, but
 >> I've not checked very thoroughly. Perhaps some do...
 >>
 >>   - A few systems seem to have good accrual VAT support, and you 
should check
 >> them out - including FrontAccounting, TurboCash, Adempiere, SQL-Ledger,
 >> Postbooks (xTuple)...
 >>
 >> Mike
 >> --
 >> Irish Linux Users' Group mailing list
 >> About this list : http://mail.linux.ie/mailman/listinfo/ilug
 >> Who we are : http://www.linux.ie/
 >> Where we are : http://www.linux.ie/map/
 >>
 >


On 18/10/2011 08:38, Colin Rooney wrote:
> Hi Mike,
>
> If what you refer to as Cash Accounting is another term for
> "Commitment Accounting", then Adempiere can do cash accounting... it's
> very popular in South America where Adempiere is also very popular.
> Now I know it's there but I've never enabled it so I am unsure how the
> VAT functionality is effected, I can only assume it correctly
> addressed.
>
> Colin
>
> On 17 October 2011 23:20, Michael Kennedy<Info at kennedysoftware.ie>  wrote:
>>>>     - Many of the major systems clearly state that they do not support
>>>> VAT.
>>>>     - Some suggest that their tax handling can be configured to handle
>>>> VAT - but that might be optimistic!
>>>>     - And, of those with good VAT support, some don't support the "cash
>>>> accounting" VAT schemes, and that eliminates some more candidates.
>>>
>>> Looks like I'm stuck with "silly old pencils", to quote the
>>> iar-thaoioseach
>>
>> Still on the VAT:
>>
>>   - I'm not aware of any FOSS system that supports "Cash Accounting" VAT, but
>> I've not checked very thoroughly. Perhaps some do...
>>
>>   - A few systems seem to have good accrual VAT support, and you should check
>> them out - including FrontAccounting, TurboCash, Adempiere, SQL-Ledger,
>> Postbooks (xTuple)...
>>
>> Mike
>> --
>> Irish Linux Users' Group mailing list
>> About this list : http://mail.linux.ie/mailman/listinfo/ilug
>> Who we are : http://www.linux.ie/
>> Where we are : http://www.linux.ie/map/
>>
>