On 6/18/2023 7:43 PM, flywire wrote:
In looking for/expecting and automated solution you are thinking one should
be reasonable. ...I live in the US [which has complex GST]
Yet surely it is reasonable for the automated GST functionality for accrual
accounting to apply to cash accounting. Even USA GST has rules, so it could
be automated.
Yes indeed, sales tax(es) can be computed automatically even here in the
US. But this is typically done by a POS system at the register and the
result is fed to the general ledger system.
Notice that "point" in "point of sales. That's because the correct tax
amount depends on the point of sale (the where). The device (that thing
that used to be just a "cash register) "knows" where it is. The product
code is scanned in (or hand entered) and that is used to determine if
taxable and at what rate. that gets sent to general ledger. Also that a
widget with that code sold informs the inventory system to deduct one
(and also send the "cost of good sold" to general ledger. Let's say you
have a business located near Port Jarvis with three shops, one in NY,
one in NJ, and one in PA (the three states meet there). The POS sales in
each of those shops would be sending DIFFERENT tax amounts to general
ledger.
You are asking general ledger to do all of this (gnucash is a general
ledger system). In that case MORE INFORMATION would be needed as part of
each transaction. Not just things like date, amount, etc. but "legal
location for this transaction" << for example, the location of the
customer if a remote sale* >>
Michael D Novack
* BTW, I have yet to do business with any remote seller that does this
correctly. They tend to use ZIP code, but ZIP code is NOT a reliable
indication of the legal location of the address. Postal delivery routes
do not respect state boundaries let alone more local political
boundaries. My working days were spent in a financial industry where
"contract state" WAS collected separately from "mail state" << because
it was very important to be sure what state's laws would apply to the
contract >> In other words, remote sellers really should "look up on a
map" (mapping software) where that mailing address is actually located
and not assume must be the same state/city as the PO that delivers mail
to that address.
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