Every time you create an accounting documentinvoice, payment, etc.), it is automatically entered in the accounting system.
When automatically saving or regenerating entries, the process uses the following settings:
- parameters for generating entry lines. (See article: Financial management - How does automatic generation of accounting entries work?)
- parameterization of accounting strategies linked to Item Families or items.
- set up VAT account assignment strategies
The application of accounting strategies follows a logic defined as follows:
1 - Application of the generic chart of accounts #.
If no custom settings are configured, Kafinea will arbitrarily apply the general accounting rules of the chart of accounts.
2 - The application of customized accounting strategies #
Kafinea lets you create customized accounting strategies that automatically predefine the accounting account to be used in a given context.
Strategies are then associated with item families. As an article family may be recorded in the accounts under several different accounts depending on the context (Purchase, Sale) and VAT, it is possible to define one or more strategies per article family.
A strategy is created by following this path: Finance/Accountingtab Settingstab, section: Account number assignment strategies for Products and Services
Strategies can be defined by context:
- Sales accounts,
- Accounts for purchases,
- Sales tax accounts
- Purchase tax accounts
Case study :
a - I'd like to define a strategy for purchasing postage. Some services are subject to VAT and others are not. In both cases, the accounting account used is the same.
I therefore create 1 single strategy, in Accounts for purchases.
- Strategy name : Postage and packing
- item family: postal charges not subject to VAT,
- Context: Purchase
- VAT: any rate
- Account for item: (the corresponding accounting account)
b - I want to define a strategy for purchasing raw materials. Depending on whether the purchase is subject to VAT or not, the accounting account for the purchase excluding VAT is different.
I therefore create two strategies for a single item family, in Accounts for Purchasing:
- Strategy name : Raw materials ex VAT
- article family: Raw materials
- Context: Purchase
- 0% VAT
- Account for item: (the corresponding accounting account)
- Strategy name: Raw materials subject to VAT
- article family: Raw materials
- Context: Purchase
- 20% VAT
- Account for item: (the corresponding accounting account)
When entering the invoice, depending on the VAT rate selected, one of the following strategies will apply.
3 - Application of strategies for VAT accounts #.
It is also possible to define VAT strategies, to use separate VAT accounting accounts for each rate. This practice is recommended to simplify the automatic VAT declaration process. (Forthcoming article: How to declare VAT?)
Case studies:
I work with French overseas departments and territories, and in the context of purchases, I would like the 20% VAT to be allocated to account 4456601 and the 8.5% VAT to account 4456602.
I create two strategies in the accounts for taxes on purchases
- TVA 20%
- Tax: 20%.
- Context: Purchase
- Account number : 4456601 8.5% VAT
- Tax rate: 8.5%.
- Context: Purchase
- Account number: 4456602
When entering the invoice, depending on the VAT rate selected, one or other of these strategies will be applied.
A tax strategy can be linked to an article strategy. In this case, the tax strategy will be given priority when registering the tax for this item.
One strategy is unique to Famille Article selected. It must be attached to an Item (Product or Service) to be applied (Catalog/Products or Catalog/ServicesSection Accounting of the selected record )
NoteA strategy can also be applied directly to an item. This action is exceptional, as in this case the strategy is only valid for the defined item.
[box type="shadow"] Tip: From the record a Article or item familyit is possible to view the existing strategies belonging to it by clicking on the Accounting' tab.. New strategies can also be added[/box].
Going further: Assigning accounting strategies is only part of the parameterization process for automatic posting of accounting entries. See the other elements in the following articles: