[
https://issues.apache.org/jira/browse/FINERACT-1289?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=18047984#comment-18047984
]
Bharath Gowda commented on FINERACT-1289:
-----------------------------------------
[~adamsaghy] Yes, but to be honest, I am not sure how it is relevant to this
ticket.
The issue is related to the loan charge, where the configured tax is not
getting posted at the loan accounting level.
Example:
If we have a loan charge with a 10% tax component attached.
And the loan is charged 11$ for the loan account
*Expected Output*
*11$ should be charged at the transaction level.*
At the accounting level
9.9$ should affect the charge Income account
1.1$ should affect the GL configured at the tax component level.
*Accounting entry will look like this:-*
Debit- Fund Source - 11$
Credit - Income from fees - 9.9$
Credit - Income from tax - 1.1$
*Current Output*
*11$ is charged at the transaction level.*
At the accounting level
11$ should affect the charge Income account
0$ should affect the GL configured at the tax component level.
*Accounting entry looks like this:-*
Debit- Fund Source - 11$
Credit - Income from fees - 11$
And if it helps, on August 15th [~rishabh-99] has already analyzed the issue
and commented; this can be a good starting point to analyze further I guess
"I believe the issue lies with missing code for splitting the taxable
charges/fees based on the tax group before making the journal entries. For eg.
In CashBasedAccountingProcessorForLoan.java before making the debit entry for
the charge, we can just split the amount based on the tax group and make the
respective journal entries. Let me know if anyone is open to discuss the issue
personally."
> Tax component not working as expected
> -------------------------------------
>
> Key: FINERACT-1289
> URL: https://issues.apache.org/jira/browse/FINERACT-1289
> Project: Apache Fineract
> Issue Type: Bug
> Components: Accounting, Charges
> Affects Versions: 1.4.0
> Reporter: Bharath Gowda
> Assignee: Kapil Panchal
> Priority: Major
> Fix For: 1.15.0
>
> Attachments: image1.png, image2.png, image3.png, image4.png, loan
> charge config.png, loan charge split not happening.png, loan product config
> -1.png, loan product config -2.png, tax component config.jpeg, tax group
> config.png
>
> Time Spent: 8h
> Remaining Estimate: 0h
>
> tax attached to the loan charge is not getting affected at the
> loan/accounting level
> To reproduce
> 1. Create a tax component-> create a tax group with the component created.
> 2. Create loan charge(any parameter, refer to the attachment for the
> parameters I used) and map the tax group created.
> 3. Add the charge to the loan product (with periodic accrual accounting)
> enabled
> 4. create/approve/disburse a loan from that loan product.
> 5. Ideally the charge with the tax attached should have JE splits for charge
> amount and tax amount separated.
> But the tax bifurcation is not happening
>
> Have attached
> product config screenshot, charge config screenshot, tax config screenshot,
> and loan issue screenshot for more understanding
> Please add a comment if you need any help
>
--
This message was sent by Atlassian Jira
(v8.20.10#820010)
