openerp-expert-accounting team mailing list archive

[Ray Carnes <rcarnes@xxxxxxxxxxxxxxxxxxx>]

Eric CAUDAL

In the USA, money you receive from a customer prior to goods or services
being provided is a LIABILITY, not revenue, so it cannot be credited to AR.



For this reason I would vote for country dependent behavior, with an
account OTHER than AR being used to hold the pre-payment.


The module we shared uses  a PAYABLE account with internal type RECEIVABLE
so that these pre-payments can be applied to invoices like AR credits (this
is the cleanest way we could think of implementing without changing the
standard workflow for managing invoices and payments).  The actual account
shows up as a liability on financial statements though.


Ray.



*From:* Openerp-expert-accounting [mailto:
openerp-expert-accounting-bounces+rcarnes=
ursainfosystems.com@xxxxxxxxxxxxxxxxxxx] *On Behalf Of *Eric Caudal
*Sent:* Wednesday, November 20, 2013 3:39 PM
*To:* openerp-expert-accounting@xxxxxxxxxxxxxxxxxxx
*Subject:* Re: [Openerp-expert-accounting] About Prepayment in ecommerce
workflow



I am still not completely convinced here about answers received: I am
talking about ecommerce sales where usually you get paid before the invoice
is validated.
Can we say it is country dependent (or depending on practices and that it
would be advisable anyway to be able to make the distinction and have 2
accounts for those cases?
I am wondering: anyone has possibility to check on other software (SAP,
myOB etc.) and give us an idea of what is done elsewhere?

Eric Caudal

*CEO*

--

*Elico Corporation, Shanghai branch*

*OpenERP Premium Certified Training Partner*

Cell: + 86 186 2136 1670

Office: + 86 21 6211 8017/27/37

Skype: elico.corp

eric.caudal@xxxxxxxxxxxxxx

http://www.elico-corp.com



[image: Elico Corp]

On 11/21/2013 03:27 AM, Robin St.Clair wrote:

Hi

It looks to me as if Gustavo and Frederic are talking about *Forward
Invoicing(Billing)*, which is not the same thing as Prepayments. Forward
Invoicing does get complicated especially in the construction industry.

Robin St.Clair



On 20/11/2013 14:37, Gustavo Adrian Marino wrote:

Frederic:

It seems the treatment is different depending on the country

In Argentina, prepayment should be taxed with VAT at the date of the
prepayment. In fact, VAT rate for the prepayment could be different as the
final VAT of the actual good (and this is a challenge for the proper
registration of the whole operation).

That's why it is important for customer to invoice the prepayment separatly
from invoice of the actual goods (part of the payment could be considered
by the customer as fiscal credit, and thus effective prepayment is reduced
- as much as 21% actually!).

I beleive OpenERP should take into consideration the possibility of a
different country specific treatment (to be configured or adapted on
country specific modules), and thus on prepayment invoice to have
posibility of using a different AR account

Regards



2013/11/20 Frédéric Clementi <frederic.clementi@xxxxxxxxxxxxxx>

Hi Gustavo,

Please see my comments below :



2013/11/20 Gustavo Adrian Marino <gamarino@xxxxxxxxx>

Let me add other reason why prepaid account is used (at least here in
Argentina)



When you invoice the prepayment, VAT credit could be used by the customer.

No, payment date is not relevant regarding VAT. The VAT is due at the date
of the transfer of property witch is in our case the date of delivery. This
is why invoices are usually dated at the same date than the delivery.





That's why at cancellation of the final invoice (the one you send once the
goods are actually delivered), you emit a credit note for the prepayment
(generating the counter movement to the prepayment, leaving the money to be
applied to the final payment and reverting the fiscal debt due to
prepayment VAT) and you use the customer credit to cancel the final invoice



This mechanism is independent of the fiscal year cut-off and allows you to
correctly treat prepayment as a debt you have with your customer till the
sending of the goods/services

yes, cut-off entries are totally independant from vat treatment



Regards





-- 

Gustavo Adrian Marino

Mobile: +54 911 5498 2515

Email: gamarino@xxxxxxxxx

Skype: gustavo.adrian.marino








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