Support for P&L and Withholding tax
Recently I switched back to Moneydance after using EasyBooks for some years.
Moneydance is really an excellent application software, but why I temporarily left it?
1. We don't have an automatically generated P&L item inside the "Income and Expenses" report. I partially solve this problem by creating P&L as a liability account and manually input the corresponding values during every term end. However this is not a perfect solution.
2. In Japan, we need a way to register transactions where Withholding tax applies. EasyBooks can help me solve this problem by applying the VST/GST calculations and treat the tax part as asset account. However, Moneydance only allow us to select VAT/GST account as Base, Expense, or Liability accounts, but not Asset accounts.
Please consider adding these function in future versions. Thank you!
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1 Posted by RJron on 24 May, 2021 06:32 AM
+1 in support of a P&L even for personal use.
2 Posted by Takaaki HATA on 27 May, 2021 05:52 AM
Here is an example:
What I want to do is
1. Assign the Tax rate to 10.21%.
2. Register a Pre-Tax Income amount, say 100,000 (Japanese yen, not British pound ^_^).
3. Let Moneydance splits the Pre-Tax Income amount into two parts: After-Tax Income and Tax. In this example
After-Tax Income: 89,790
Tax (ASSET): 10,210
(In Japan, Withholding Tax is treated as ASSET.)
However, to get the expected result with Moneydance, I have to
1. Change the Tax rate assignment first into a minus value -10.21% (Page 3).
2. Manually calculate the After-Tax Income (89,790), then tell Moneydance the value (Page 4).
Consequently, Moneydance splits this After-Tax Income into two parts (Page 5):
Pre-Tax Income: 100,000 (Moneydance calculates this value back to me!)
Tax (EXPENSE): 10,210
(Moneydance only allows us assign VAT/GST as EXPENSE or LIABILITY.)
In brief, Moneydance can only deduce Pre-Tax Income from After-Tax Income by an indirect method stated above, but has no method to do the reverse.
Furthermore, even though I employ this indirect method to register transactions, there's still a problem: Depending on the rounding treatment of customer's accounting system, sometimes the Tax amount I recorded here differs a little bit from what the customer informed me, so I have to make a correction to the TAX amount here (Page 6). However, after recalculation by Moneydance, the amount modified is the INCOME part rather than the TAX part (Page 7)! Note that in this case Pre-Tax Income amount should not be modified by any calculation.
In this example, even though I modified the TAX part from 10,210 into 10,211 (Page 6), Moneydance didn't change it as I expected. Instead, the INCOME part was modified to 99,999 (Page 7).
System closed this discussion on 26 Aug, 2021 06:00 AM.