No, it won't because sales tax is not charged on the order.

Regards
Vikas

On May 30, 2012, at 4:11 PM, Nandani Aggarwal wrote:

> Vikas,
> 
> Thank a lot ,What ever you explained is absolutely correct but by doing
> taxable = 'N' and taxPromotions to 'N' are you able to see tax transaction
> in your invoice  which shows the amount paid to tax authority.?
> 
> Regards
> Nandani
> 
> On Wed, May 30, 2012 at 2:51 PM, Vikas Mayur <[email protected]> wrote:
> 
>> Nandani,
>> 
>> I have never tested this use case before and was curious to know how this
>> works so I did few test by placing a sales order for product WG-1111 and
>> DemoCustomer (note: the shipping address of this demo customer is Utah and
>> OFBiz demo data have a tax authority setup for this state. I only did one
>> change in the TaxAuthorityRateProduct entity by setting the attribute
>> taxPromotions to 'N') from demo data once by setting the taxable flag on
>> this product to 'Y' (although keeping it null is same) and once by setting
>> the flag to 'N' . When taxable flag is 'N' the item was exempted from sales
>> tax and when it is 'Y' or Null the sales tax for item is aded to the cart
>> or order grand total.
>> 
>> You may need to check your tax authority setup i.e. whether you have
>> allowed tax on shipping and/or promotion. I doubt tax amount you are seeing
>> in the grand total is either calculated on shipping and/or promotion.
>> 
>> Below is code snip from the service calcTax in TaxAuthorityServices Class
>> and conditional check on taxable flag determines whether the item should be
>> tax exempted or not.
>> 
>>               if (product != null && (product.get("taxable") == null ||
>> (product.get("taxable") != null &&
>> product.getBoolean("taxable").booleanValue()))) {
>>                   taxable = taxable.add(itemAmount);
>>               }
>> 
>> HTH
>> 
>> Regards
>> Vikas
>> 
>> On May 29, 2012, at 11:05 AM, Nandani Aggarwal wrote:
>> 
>>> Thank a lot for help and such a nice and simple explanation of answers.
>>> 
>>> I tried your solutions with taxable field value as "Y"and "N" both.But in
>>> both cases in shoppingcart.java (cart.getTotalSalesTax()) returns tax
>> value
>>> and (cart.getGrandTotal()) adds this tax in price(already including tax
>>> value).
>>> 
>>> I changed (cart.getGrandTotal()) so that it doesn't include tax but
>> during
>>> order creation it adds tax amount to total amount.It adds Order
>>> adjustments (like discounts or tax).So should i change there as well or
>>> there is another simple solution to it.
>>> 
>>> 
>>> - Regards
>>> Nandani
>>> 
>>> On Mon, May 28, 2012 at 10:37 PM, Vikas Mayur <[email protected]>
>> wrote:
>>> 
>>>> Inline
>>>> 
>>>> Regards
>>>> Vikas
>>>> 
>>>> On May 28, 2012, at 8:59 PM, Nandani Aggarwal wrote:
>>>> 
>>>>> Thanks a lot for reply.
>>>>> 
>>>>> I am facing some problem in maintaining sales tax transactions.In my
>>>> case ,
>>>>> on my ecommerce site i am displaying products including tax,
>>>>> Problem :
>>>>> 1. I am displaying product with price including tax.So when order is
>>>> placed
>>>>> and invoice is created then tax transactions display tax amount on
>> price(
>>>>> already including tax).
>>>>> For example : Product "A" is displayed at price Rs100 (Price :90 + tax
>> :
>>>>> 10).
>>>>> But on invoice transactions are :
>>>>> Sales Transactions - Rs100
>>>>> Tax Transactions - RS 10
>>>>> Making Invoice Total - Rs110.(which is wrong)Invoice total should be Rs
>>>>> 100/-
>>>>> I want grand total should be sum of product's  subtotal.
>>>> 
>>>> Check the 'taxable' field on Product entity, I think setting it to 'N'
>> on
>>>> individual products should exempt the product from further sales tax.
>>>> 
>>>>> 
>>>>> 2. If i want to Apply discount on price excluding tax and then display
>>>>> final amount (Price - discount) + tax.
>>>>> But in ofbiz i am unable to display such price and grandtotal.
>>>>> 
>>>>> Any idea ,  how above problems can be handled.?
>>>> 
>>>> Discount and Tax should be created as Order Adjustments to display the
>>>> prices in the manner you mentioned.
>>>> 
>>>> I haven't done any testing but I think there may be solution OOTB with
>>>> some minor modifications where required.
>>>> 
>>>> Lets take your example for instance. Product 'A' displayed price is Rs.
>>>> 100 (Actual product price is 90 & tax is 10). Lets say you want to give
>> Rs.
>>>> 20 discount on the product price which means that your order total will
>> be
>>>> Rs. 80 with product price after discount as Rs. 70 (since discount is
>>>> applied after excluding tax from product price) & a total sales tax of
>> Rs.
>>>> 10.
>>>> 
>>>> Instead of Rs. 20 discount, you may give a discount including the sales
>>>> tax on the price displayed to customer.
>>>> 
>>>> Final Product Price = Price Displayed - (Discount + Tax) = 100 - (20 +
>> 10)
>>>> = 70
>>>> 
>>>> You may then apply the tax on the product price (note you don't need to
>>>> set the 'taxable' flag I mentioned above) in such a manner that tax
>> amount
>>>> is added back to the order total.
>>>> 
>>>> Item Sub Total = Rs. 100
>>>> Discount = Rs. 30
>>>> Sales Tax = Rs. 10
>>>> 
>>>> Order Total = Rs. 80
>>>> 
>>>> HTH
>>>> 
>>>>> I want correct transaction details on my invoice.It should include
>>>> discount
>>>>> , tax and sales information.
>>>>> Tax is added in product price itself.Tax is not included in final order
>>>>> amount.
>>>>> 
>>>>> Thanks
>>>>> Nandani
>>>>> 
>>>>> 
>>>>> 
>>>>> 
>>>>> On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur <[email protected]>
>>>> wrote:
>>>>> 
>>>>>> Yes, I need to keep all the related transactions so that income sheet
>>>>>> reflect the correct net income. For all the sales tax (sales taxes
>>>> could be
>>>>>> at country/state/county/city level) & COGS (for different items)
>>>>>> transaction entry detail records, I just created one detail record for
>>>> each.
>>>>>> 
>>>>>> Regards
>>>>>> Vikas
>>>>>> 
>>>>>> On May 28, 2012, at 7:46 PM, Nandani Aggarwal wrote:
>>>>>> 
>>>>>>> Nice Approach , Are you also handling tax related transactions so
>> that
>>>>>>> actual or final revenue can be generated or determined which may
>>>> include
>>>>>>> COGS,Discount,Tax(Sales Tax , CST , VAT etc).
>>>>>>> 
>>>>>>> Thanks
>>>>>>> Nandani
>>>>>>> 
>>>>>>> On Mon, May 28, 2012 at 5:37 PM, Vikas Mayur <[email protected]>
>>>>>> wrote:
>>>>>>> 
>>>>>>>> Pierre,
>>>>>>>> 
>>>>>>>> The approach actually worked, moreover I don't need separate
>> accounts
>>>>>> as I
>>>>>>>> can associate the existing accounts of the parent company to other
>>>>>> parties
>>>>>>>> like wholesale and retail etc. As a test, I have placed a sales
>> order
>>>>>> with
>>>>>>>> product GZ-2644 with 3 Qty for a wholesale party and quick ship
>> entire
>>>>>>>> order which resulted in 4 accounting transactions namely Sales
>>>> Invoice,
>>>>>>>> Sales Shipment, Incoming Payment & Payment Applied. To setup the
>>>> income
>>>>>>>> sheet for wholesale party, I manually created all the required
>>>>>> transactions
>>>>>>>> (I believe I just needed Sales Invoice & Sales Shipment
>> transactions)
>>>>>> and
>>>>>>>> transaction details. That is it. I think I now need to write some
>> code
>>>>>> so
>>>>>>>> that such transactions could be created automatically. Sorry, I
>> tested
>>>>>> this
>>>>>>>> on my local copy so you may not be able to see it on demo :)
>>>>>>>> 
>>>>>>>> Your idea of setting up a separate instance for these external
>> parties
>>>>>>>> seems good but I believe the other approach which I used is easier.
>>>> Let
>>>>>> me
>>>>>>>> know if you have any thoughts.
>>>>>>>> 
>>>>>>>> Regards
>>>>>>>> Vikas
>>>>>>>> 
>>>>>>>> On May 28, 2012, at 12:51 PM, Vikas Mayur wrote:
>>>>>>>> 
>>>>>>>>> Hi Pierre,
>>>>>>>>> 
>>>>>>>>> Thanks for your help and your interest in the topic. I am currently
>>>>>>>> testing business transaction and their related accounting
>> transactions
>>>>>> with
>>>>>>>> the OFBiz demo data along with my custom party data of Wholesale,
>>>> Retail
>>>>>>>> channels.
>>>>>>>>> 
>>>>>>>>> For instance when an invoice is captured for a sales order, you
>> would
>>>>>>>> have various accounting transactions corresponding to this business
>>>>>>>> transaction (Invoice is being captured) like account receivables,
>>>> COGS,
>>>>>>>> discounts, general sales etc. The transactions with OFBiz demo data
>>>> are
>>>>>>>> currently posted to correct account but they are registered to
>>>>>> 'Company' -
>>>>>>>> the parent organization.
>>>>>>>>> 
>>>>>>>>> After doing some of these tests and how the transactions are
>> posted,
>>>> I
>>>>>>>> think I would need two things to be able to generate income sheet
>> per
>>>>>>>> distribution channel.
>>>>>>>>> 
>>>>>>>>> 1. Create separate revenue accounts for each distribution channels,
>>>>>> they
>>>>>>>> can be setup as subsidiary ledger accounts similar to the existing
>>>> demo
>>>>>>>> data. For example, the hierarchy of accounts for SALES would look
>> like
>>>>>> this.
>>>>>>>>> 
>>>>>>>>> 
>>>>>>>>   Revenue
>>>>>>>>> 
>>>>>>>>           |
>>>>>>>>> 
>>>>>>>>     Sales
>>>>>>>>> 
>>>>>>>>           |
>>>>>>>>> 
>>>>>>>> -------------------------------------------------------------
>>>>>>>>>                                           |
>>>>>>>>   |                                               |
>>>>>>>>>                           General Sales       General Sales
>>>>>>>> Wholesale             General Sales Retail
>>>>>>>>> 
>>>>>>>>> where 'General Sales' account transaction would be registered to
>>>>>>>> 'Company' - the parent organization.
>>>>>>>>> 
>>>>>>>>> 2.  Create duplicate accounting transactions for each revenue
>> account
>>>>>> in
>>>>>>>> such a manner that these transactions are registered to Wholesale
>> (If
>>>>>> the
>>>>>>>> sale was made to WholeSalers), Retail (If the sale was made to
>>>>>> Retailers)
>>>>>>>> etc. This would require additional code so that system can lookup
>> the
>>>>>> 'Bill
>>>>>>>> To Customer' and automatically create all the required duplicate
>>>>>>>> transactions.
>>>>>>>>> 
>>>>>>>>> Once all the transactions are posted, I should be able to generate
>> a
>>>>>>>> consolidated income sheet (this already works OOTB) for Company and
>>>>>>>> separate income sheet per distribution channel.
>>>>>>>>> 
>>>>>>>>> Let me know if you see any issues with this approach.
>>>>>>>>> 
>>>>>>>>> Regards
>>>>>>>>> Vikas
>>>>>>>>> 
>>>>>>>>> On May 25, 2012, at 7:24 PM, Pierre Smits wrote:
>>>>>>>>> 
>>>>>>>>>> Vikas,
>>>>>>>>>> 
>>>>>>>>>> If the distribution channels are truly independent organisation
>>>>>> (meaning
>>>>>>>>>> legally) you should set up for each one a different instance of
>>>> OFBiz,
>>>>>>>>>> whereby the distribution channels buys from the company and sells
>> to
>>>>>>>> their
>>>>>>>>>> customers. Otherwise there might appear a conflict of interest.
>>>>>>>>>> 
>>>>>>>>>> If otherwise the distribution channels are like daughter companies
>>>> or
>>>>>>>>>> subsidiaries (and accounting, et all is done by the company) you
>>>> could
>>>>>>>>>> (should?) link them in one instance to the company like
>> departments
>>>>>> and
>>>>>>>>>> create separate costcenters for each. Subsequently create for each
>>>> the
>>>>>>>> set
>>>>>>>>>> of accounts regarding turnover, discount and cogs and connect
>> those
>>>> to
>>>>>>>> the
>>>>>>>>>> costcenters.
>>>>>>>>>> 
>>>>>>>>>> In order to capture for each you could then create a sales channel
>>>> for
>>>>>>>> each
>>>>>>>>>> (catalog, categories and if nessesary stores) and  apply for each
>>>>>>>>>> distribution channel the various price, promotion and shipping
>> rules
>>>>>> in
>>>>>>>>>> their respective sales channel.
>>>>>>>>>> 
>>>>>>>>>> Finally, and this is something I haven't tested yet, you should
>> map
>>>>>> the
>>>>>>>>>> earlier defined fico accounts to the categories in each sales
>>>> channel
>>>>>> in
>>>>>>>>>> ProductCategoryGLAccount in FICO. See example below.
>>>>>>>>>> 
>>>>>>>>>> 
>>>>>>>> 
>>>>>> 
>>>> 
>> https://demo-trunk.ofbiz.apache.org:8443/accounting/control/GlAccountAssignment?organizationPartyId=Company
>>>>>>>>>> 
>>>>>>>>>> That should do the trick. But like I said, I haven't tested it
>> yet.
>>>>>>>>>> 
>>>>>>>>>> One thing I am also not certain about is how sales transactions
>> will
>>>>>> be
>>>>>>>>>> handled by OFBiz when generated by a Sales Backoffice for each
>> when
>>>>>> the
>>>>>>>>>> scenario described above is in place.
>>>>>>>>>> 
>>>>>>>>>> Good luck with your endeavours and keep us posted how you will
>>>>>>>> eventually
>>>>>>>>>> get to your optimal solution.
>>>>>>>>>> 
>>>>>>>>>> Regards,
>>>>>>>>>> 
>>>>>>>>>> Pierre
>>>>>>>>>> 
>>>>>>>>>> 
>>>>>>>>>> 2012/5/25 Vikas Mayur <[email protected]>
>>>>>>>>>> 
>>>>>>>>>>> Hi Pierre,
>>>>>>>>>>> 
>>>>>>>>>>> Thanks for your response. Yes, you are absolutely correct. I
>> should
>>>>>> be
>>>>>>>>>>> able to see the income sheet of the company (parent organization)
>>>> as
>>>>>>>> well
>>>>>>>>>>> as the income sheet per distribution channel.
>>>>>>>>>>> 
>>>>>>>>>>> Regards
>>>>>>>>>>> Vikas
>>>>>>>>>>> 
>>>>>>>>>>> On May 25, 2012, at 2:36 PM, Pierre Smits wrote:
>>>>>>>>>>> 
>>>>>>>>>>>> Hi Vikas,
>>>>>>>>>>>> 
>>>>>>>>>>>> Just to get a greater understanding of the challenge you're
>>>> facing,
>>>>>> I
>>>>>>>> am
>>>>>>>>>>>> understanding that the distribution channels operate as
>>>> independent
>>>>>>>>>>>> organisations and not as internal departments. And that the
>>>>>>>> distributors,
>>>>>>>>>>>> wholesales and retailers are associated to the distribution
>>>>>> channels.
>>>>>>>> And
>>>>>>>>>>>> that sales is done thru the distribution channels, but that the
>>>>>>>>>>>> transactions of the sale need to be registered with the company
>>>>>>>> combined
>>>>>>>>>>>> with commission calculations per distribution channel.
>>>>>>>>>>>> 
>>>>>>>>>>>> Am I correct in assuming that's what you're saying?
>>>>>>>>>>>> 
>>>>>>>>>>>> Regards,
>>>>>>>>>>>> 
>>>>>>>>>>>> Pierre
>>>>>>>>>>>> 
>>>>>>>>>>>> 2012/5/25 Vikas Mayur <[email protected]>
>>>>>>>>>>>> 
>>>>>>>>>>>>> Hi,
>>>>>>>>>>>>> 
>>>>>>>>>>>>> I am working for a customer and he is looking to setup a chart
>> of
>>>>>>>>>>> accounts
>>>>>>>>>>>>> for his organization. I have mentioned below a brief
>> description
>>>> of
>>>>>>>> the
>>>>>>>>>>>>> business of this customer, his requirements and a possible
>>>> solution
>>>>>>>>>>> that I
>>>>>>>>>>>>> think would meet his needs. Please take a look and also through
>>>> the
>>>>>>>> Q's
>>>>>>>>>>>>> below :), if you know anything then let me know. Thanks in
>>>> advance
>>>>>>>> !!!
>>>>>>>>>>>>> 
>>>>>>>>>>>>> Business Overview:
>>>>>>>>>>>>> A parent organization with several divisions like R&D, Sales &
>>>>>>>>>>> Marketing,
>>>>>>>>>>>>> Operations, Administration etc. and employees. The company
>>>> (parent
>>>>>>>>>>>>> organization) only sell its products through a number of
>>>>>> distribution
>>>>>>>>>>>>> channels (they also call them as revenue channels & profit
>>>> centers)
>>>>>>>> like
>>>>>>>>>>>>> wholesale, distributor. retail etc. The company will give them
>> a
>>>>>>>> certain
>>>>>>>>>>>>> commission (as per the agreement) on every sale. The
>> distribution
>>>>>>>>>>> channels
>>>>>>>>>>>>> are not the divisions of the company and does not have any
>>>>>> employees
>>>>>>>>>>>>> either. The company will have a number of warehouses (probably
>>>>>> shared
>>>>>>>>>>> among
>>>>>>>>>>>>> the distribution channels) to fulfill the orders.
>>>>>>>>>>>>> 
>>>>>>>>>>>>> Requirement:
>>>>>>>>>>>>> The company need to generate a separate income sheet for each
>>>>>>>>>>> distribution
>>>>>>>>>>>>> channels so that they know the net income by each channel. They
>>>>>> also
>>>>>>>>>>> need a
>>>>>>>>>>>>> consolidated GL totals (generate a consolidated income
>> statement)
>>>>>>>> and a
>>>>>>>>>>>>> balance sheet report for the company.
>>>>>>>>>>>>> 
>>>>>>>>>>>>> Solution:
>>>>>>>>>>>>> Distribution Channel Setup
>>>>>>>>>>>>> The distribution channels are organizations (although not
>>>> internal
>>>>>> to
>>>>>>>>>>> the
>>>>>>>>>>>>> Company) and will be setup as party group in the system. For
>>>>>> example
>>>>>>>>>>> there
>>>>>>>>>>>>> will be party group for wholesale, distributor & retail each.
>>>> There
>>>>>>>>>>> would
>>>>>>>>>>>>> be a number of wholesalers, distributors and retailers who will
>>>>>> sell
>>>>>>>> the
>>>>>>>>>>>>> products of the company and they will also be setup as party
>>>> group
>>>>>>>> with
>>>>>>>>>>> a
>>>>>>>>>>>>> party relationship to wholesale, distributor & retail party
>> group
>>>>>>>>>>>>> respectively.
>>>>>>>>>>>>> GL Account & Chart of Accounts Setup
>>>>>>>>>>>>> I looked through the demo GL setup and Chart of Accounts
>> template
>>>>>>>> data
>>>>>>>>>>> in
>>>>>>>>>>>>> OFBiz, was very helpful. I know that an account can be used by
>>>> one
>>>>>> or
>>>>>>>>>>> more
>>>>>>>>>>>>> internal organization but have doubts about how to associate
>> the
>>>>>>>> account
>>>>>>>>>>>>> and how the transaction would be posted to the correct account.
>>>>>>>> Sorry,
>>>>>>>>>>>>> haven't looked through the code in detail.
>>>>>>>>>>>>> 
>>>>>>>>>>>>> There will be number of accounts but lets say we have three
>>>>>> accounts,
>>>>>>>>>>> 3000
>>>>>>>>>>>>> - Sales, 3010 - Discount on Sale, 3020 - COGS. The net income
>>>> will
>>>>>> be
>>>>>>>>>>>>> [Total of Sales - (Total Discount on Sale + Total COGS)].
>>>>>>>>>>>>> 
>>>>>>>>>>>>> Q1. Do I need to associate the above accounts to the parent
>>>> company
>>>>>>>> OR
>>>>>>>>>>> to
>>>>>>>>>>>>> each distribution channel OR both? Default mappings?
>>>>>>>>>>>>> Q2. Do I need separate accounts for the parent company and each
>>>>>>>>>>>>> distribution channels? Lets say the 4 different Sales account
>> for
>>>>>> the
>>>>>>>>>>>>> parent and three distribution channels? Don't think so.
>>>>>>>>>>>>> Q3. Any other thing I should be concerned about, like the
>> shared
>>>>>>>>>>> warehouse
>>>>>>>>>>>>> by all the distribution channels?
>>>>>>>>>>>>> 
>>>>>>>>>>>>> Regards
>>>>>>>>>>>>> Vikas
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>>>> 
>>>>>>>>> 
>>>>>>>> 
>>>>>>>> 
>>>>>> 
>>>>>> 
>>>> 
>>>> 
>> 
>> 

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