openerp-expert-accounting team mailing list archive

[GUENARD <michel.guenard@xxxxxxxxxxx>]

Hi every one.
Just joining the discussion and fresh user of OpenErp:)

Rates used for calculations, like Taxes, rebates, currency conversions,
social security taxes, sales commissions, income taxes, quantity rates
of a product used in a BOM etc... can not be rounded up or down by any
software.

These rates are either determined by the law or by an agreement (signed
or not) between parties (partners) or determined as a ruling inside the
company.

They must stick to these rules which are mandatory and hence set by the
users (at cy level) with the appropriate decimal length.

Calculations like average cost of products or average hourly rate of
salary or rebates per unit of sale, weights per unit, quality default
rate per unit (or million of units) ....resulting on decimal values can
be rounded by the users, according to their company business rules
AND/OR applicable regulations.

For accounting purposes, the result of any single calculation
(rate*base_amount or sums/substraction) needs to comply with the
currency decimal structure of the company in order to fit with the
lowest monetary unit (cents for instance when cents are a monetary unit)

Other famous ERP softwares already solved these issues; I believe OpenErp cannot be innovative in this regard. see Oracle, SAP...
See for instance, Oracle guidelines for currency rates
http://docs.oracle.com/cd/A60725_05/html/comnls/us/gl/currency.htm#t_currency
….......................
6. Enter the Precision of the currency to designate the number of digits to the right of the decimal point used in regular currency transactions.
7. Enter the Extended Precision to designate the number of digits to the right of the decimal point used in calculations for this currency. The extended precision must be greater than or equal to the standard precision.
Note: Some Oracle Applications use the extended precision. Others, like General Ledger, do not.
8. Enter the Minimum Accountable Unit to designate the smallest denomination used in this currency. Note that this might not correspond to the precision.
See tax calculation rules
http://docs.oracle.com/cd/A60725_05/html/comnls/us/gl/autota02.htm#r_autotax_rul
http://docs.oracle.com/cd/A60725_05/html/comnls/us/ar/calctax.htm#e_calctax

-- 
You received this bug notification because you are a member of OpenERP
Accounting Experts, which is subscribed to the bug report.
https://bugs.launchpad.net/bugs/868839

Title:
  Tax Rates Round to Decimal Precision of Account + 2 - Should be
  variable

Status in OpenERP Addons (modules):
  Confirmed

Bug description:
  In https://launchpad.net/bugs/667316 it was noted that tax percentage
  rates were limited to 2 decimals. As a "reasonable default" new code
  was introduced to fix this by changing that behavior to "use the
  decimal_precision of Account +2 for percentage values". While I can
  understand how this would work in most situations, we have just
  implemented an OpenERP system in Fresno CA where the local sales tax
  is in fact 7.975% (or 0.07975 when entered into OpenERP). Currently
  that rounds our rate to 7.98% given our Accounts are setup with a
  precision of 2. This does not calculate the correct tax amounts on our
  invoices (off by as much as a few dollars in some instances where the
  invoiced amount is large enough). We have no need for nor do we want
  our Accounts to round to anything beyond 2 decimals and the fix
  implemented in the bug above precludes using a tax rate such as the
  one noted that requires more than 4 decimal places (account +2 in our
  case is 4 but the rate we use needs 5).

  While I understand one can change the calculated tax value on the
  invoice, that is not behavior that I can expect of our end users on a
  regular basis. In the interim I have modified the code on our side in
  account.py to return account+3 instead of account+2:

  class account_tax(osv.osv):
      ...
      def get_precision_tax():
          def change_digit_tax(cr):
              res = pooler.get_pool(cr.dbname).get('decimal.precision').precision_get(cr, 1, 'Account')
              return (16, res+3)
          return change_digit_tax

  This works fine for me but I thought that since the previous bug noted
  Account+2 was a "reasonable default" that it should be just that... a
  default - which implies the decimal precision of the rate relative to
  the account precision should be variable and able to be set by the
  user. I personally believe that Account precision and Tax precision
  have nothing to do with each other and shouldn't be related in such a
  way to begin with. Shouldn't there be an actual entry in the
  decimal_precision table specifically for taxes that does not depend on
  and unrelated entities precision? Something like:

  class account_tax(osv.osv):
      ...
      def get_precision_tax():
          def change_digit_tax(cr):
              res = pooler.get_pool(cr.dbname).get('decimal.precision').precision_get(cr, 1, 'Tax')
              return (16, res)
          return change_digit_tax

  Just my thoughts.

  Current Environment:
  OpenERP 6.0.3 on Mac OS X 10.7 (the code above exists in the trunk as well)

  I'd be happy to help work something up if any one agrees or would find
  my suggestion to be useful.

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