I’m trying the program in trial mode. It seems simple enough to use and has everything we need, but I have some doubts that I would like to resolve before signing a definitive plan.
My company imports and sells fertilizers. We pay 15% VAT at customs. This tax is deducted from the 13% VAT we pay for what we sell. Similarly, all VAT paid on each purchase invoice is deducted from that paid for sales. Is there a way to have a final balance sheet of how much VAT is actually paid after deductions?
It is not clear to me how the issue of exchange rates is handled. Is it updated automatically or manually? This is because we work with three currencies, two of which (the local one and the dollar) with a fixed exchange rate slightly higher than the official one established by the government (this to incorporate exchange rates), and the other (euro) with change variable we use to determine import costs.
The price of our products is negotiated for UOM (liter, kilogram), but the packs are all multiples or sub-multiples of the UOM. How can I make the client see in the quotations the price negotiated for UOM and that of the proposed / available package?
Finally (for something I haven’t seen yet): in quotations is there a field (or a way to display it) that shows the gross profit on the negotiated price, to avoid our sellers to give unsustainable discounts?
Please find below my responses on your questions.
This sounds like Input and Output Tax, you pay only the difference after the set-off of the tax you have paid on your purchases. This will have to be handled via configurations in the Chart of Account and Tax Configurations on your Sales and Purchases. What you would do is, define one ledger for VAT and use the same ledger for Sales and Purchase VAT. In the end the difference of Debit and Credit; Balance is what you need to Pay or have the Credit.
Exchange rates are handled automatically by default, it fetches Exchange Rates in real time. However, if you have certain fixed rates, you can define them in the Currency Exchange master. Setup>Accounts>Currency Exchange>New
You will have to use the UOM Conversion table in Item Master and Define a separate Purchase and Sale UOM
first of all thanks for the time spent answering me and for the answer. Exchange rate issues and item packs are clear and resolved. On the subject of visible profit in quotation and sales, I have tried and it seems to me that it is requested by many (here for example [Cost of item on Quotation] . In small businesses and where sellers have a certain freedom this is a fundamental fact. Trying I saw that if the costs are all correctly set to the purchase, if you make a quotation with a price below the cost, the program warns you. It is something, but as they have come this far, I wonder why we do not introduce the possibility of seeing the profit in every quotation / sale directly. For the solution you propose I lack knowledge: which tables and fields to query?
On the question of VAT, on the other hand, it is not clear to me. Surely it is a question of budget. But the fact is that customs VAT for example is a debt that then becomes a credit. How can I account it? I had thought of a solution like this (childing accounts)
1.1 VAT (debt)
1.2 VAT on purchases (credit)
1.2.1 VAT on purchases (debt)
But i’m not sure this is logic. A question more, please. Do you know why i have not the Frappe framework in mysite.erpnext.com? Thanks for all, hope this discussion may be helpful to everyone else.