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Document Entry Scenarios

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Tropicalrambler (Alain Berger) edited this page Jul 21, 2020 · 25 revisions

Document Entry Scenarios

Introduction

Several accounting documents exist in Guatemala, and each has a specific and particular manner for which taxes need to be declared and accounted for. In particular, the Sales Tax or VAT (IVA) accounting will have specific scenarios depending on the Tax Category of the Supplier, our entity (Company), for export purposes , and even on a per item basis. This wiki page aims to clarify specific example of each scenario to help the user account and declare taxes properly.

Initial configuration

Before we can move to scenarios, it is advisable to configure all the fields that will come in handy for managing our reports properly.

  1. Company: Once you have a production ERPNext server, company will have been created. It is assumed you have already configured default accounts for stock, payable and receivable, etc. 1.1 Address: Company address must at least have the country and Establishment ID Number (a specific number used for electronic invoicing and tax purposes, chosen by company managers). This address is the official fiscal address to be displayed in invoices. 1.2 Tax Witholding Ranges Table: Specify the tax withholding ranges for Income Tax Payable (ISR Por pagar), Income Tax Receivable (ISR Por cobrar), VAT Payable (IVA por Pagar), VAT Receivable (IVA por Cobrar), Income Tax Rate, Sales Tax Rate. Also specify the lower and upper amounts for income tax calculations with the applicable rates in the child table for issue 173
  2. Account: Create a Chargeable account destined to keep track VAT Payable amount (Credito Fiscal)

Scenario #1: Invoice for Goods Purchased

In this scenario, our Company buys a pound of coffee for Q22. The supplier is a default supplier, which means the invoice will be affected for VAT. Value added tax rate is 12% included in price. Doctype Requirements:

  1. Purchase Taxes & Charges Table: Make sure create a Template with the following field values: Title: "IVA 12% Guatemala" Default: 1 Default when excise taxes present: 1 Is Exempt?: False Purchase Taxes and Charges Table: { "Consider Tax or Charge for": On Net Total "Add or Deduct": Add "Type": On Net Total "Is this Tax included in Basic Rate?": 1 "Account Head": ((The account created above)) "Description": ((Automatic loading or whatever you desire)) "Cost Center": ((Not required, but specify any cost center you wish)) "Rate": 12.00 }
  2. Supplier: A properly configured supplier, which must have 3.1 Tax ID & NIT Proveedor: As C/F (Final consumer) or the correct Taxpayer ID Number. 3.2 Address: At the very least, the Country for supplier must be specified, along with other required fields.
  3. Item: An item with at least these fields and corresponding values: 4.1 Name: A proper name for the item being purchased. 4.2 Maintain Stock: 1 (Any physical item must have stock tracking enabled for correct accounting. Does not affect tax calculations in our reports) 4.3 Default UOM: IMPORTANT! Choose a default UOM, and make sure the UOM (in its doctype) has a three digit code configured as per our app requirements. Example: "Unit" = "UNI"
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