Manual Tax Closing

How a Purchase Tax & Sales Tax being: viewed, calculated, paid, and reviewed; In Odoo, manually.

Manual Tax Closing Flow

1. Go to Journal Items

2. Filter BY

   1. Tax Account

      1. 21221020 VAT Sales

      2. 21221010 VAT Purchase

      3. 11221020 VAT Payable

      4. 11221010 VAT Recoverable

   2. Date, ex:

      1. This month, OR

      2. Until the end of this month

3. Create a MANUAL Tax Closing Journal Entry, containing all Tax CoA, ex:

   1. 21221020 VAT Sales

   2. 21221010 VAT Purchase

4. WHEN, Add this to the Tax Closing Journal Entry

   1. DR > CR (More Sales than Purchases) -> Add 11221020 VAT Payable

   2. CR > DR (More Purchases than Sales) -> Add 11221010 VAT Recoverable

5. WHEN there is

   1. 11221020 VAT Payable -> Pay from the BANK

   2. 11221010 VAT Recoverable -> The Government OWE you

6. CHECK when

   1. TOTAL DR != TOTAL CR -> The Tax Closing IS NOT FINISHED yet!

(Purchase &) Billing to Pay the Tax

1. Create a Purchase, 1 Purchase is enough for 1 type of Tax, for life

2. Create a Bill

3. Enter the Bill amount

   1. IF the amount is based on the above Manual Tax Closing, fill it as is

   2. IF the amount is calculated outside Odoo (for example, in Excel), MODIFY above Manual Tax Closing, to INCLUDE an Account for calculation Differences.