Ashish,

Before addressing the technical improvement,

STEP 1: First of all, you must deploy CoAs accurately. From IFRS
standpoint, we must recognise that Tax flow will get considered first as an
income and then an expense. Secondly, a tax event is a time bound activity
i.e periodic, installment level or such. So, Fineract must realise to
create an accrual entry (even before the tax is reported to be paid in the
system). The Charges time type configuration will take care of this on the
configuration levels.
**In your configuration screenshot, the Advanced Accounting rule mapping is
missing. Naturally, you should create a CoA say VAT in Income Accounting
under the Total Fee Income or such. Similarly, you should create another
CoA in Expense as VAT Payable or such.

STEP 2: In Advanced accounting rule, pls map specific income account of VAT
to the Charge created above and hopefully already attached to Loan product.

STEP 3: Once this is done, check the JL entry. You haven't arrived anywhere
yet except at the top of the real problem.

"Our team tried different permutations to recreate the error and the issue
still remains at large well a "big bug". Improvements to the Advanced
Accounting rule will orient the issue towards the solution.

Now to fit your change request, you gotta instruct the system to publish JL
in the above sequence.
1. Cash clearing>Total Fee Income (normal periodic accrual accounting
mapping)
*2. Cash Clearing>VAT (owing to Advanced accounting rule's capability to
override for specific income mapping)  *
3. VAT>VAT payable (background JL entries, does not need to be a system
entry)

(Fix 2 above this and the issue should be fixed for a basic use case. We
should then talk about edge cases. Now our team has recently fixed this bug
here which is what relates to this conversation, for both loan and savings
products.
https://www.mail-archive.com/[email protected]/msg09461.html and:
https://issues.apache.org/jira/browse/FINERACT-600

**If you would like, you can pick up the code level improvements. Just get
in touch on slack with @Audrey Ndum <[email protected]> who can
guide you with the exact PR for this fix. You certainly will have to
enhance this to fit charge based tax scheme in Fineract but the
re-engineering principle will be similar.
Hope this helps.
Thanks and enjoy life!

On Mon, Aug 16, 2021 at 10:37 AM Ashish Verma <[email protected]>
wrote:

> I am looking for someone who can fix this issue -
> https://issues.apache.org/jira/browse/FINERACT-1289.
>
> Interested people revert back so that we can discuss the financials.
>
>
> Ashish Verma
> CTO | Kugelblitz Technologies
> *Email :* [email protected]
> *M :* +91 9483033085
> *LinkedIn : *www.linkedin.com/in/avashish
>


-- 
Ankit
Managing Partner
Muellners ApS, Denmark

Impressum- Muellners® Inc; Copenhagen, Denmark CVR: 41548304;
New Delhi, India CIN: U72900DL2019PTC344870; Foundation EU CVR:41008407

This mail is governed by Muellners®  IT policy.
The information contained in this e-mail and any accompanying documents may
contain information that is confidential or otherwise protected from
disclosure. If you are not the intended recipient of this message, or if
this message has been addressed to you in error, please immediately alert
the sender by reply e-mail and then delete this message, including any
attachments. Any dissemination, distribution or other use of the contents
of this message by anyone other than the intended recipient is strictly
prohibited. All messages sent to and from this e-mail address may be
monitored as permitted by applicable law and regulations to ensure
compliance with our internal policies and to protect our business. E-mails
are not secure and cannot be guaranteed to be error free as they can be
intercepted, amended, lost or destroyed, or contain viruses. You are deemed
to have accepted these risks if you communicate with us by e-mail.

Reply via email to