Splitting a transaction and tax
When splitting a transaction, I need to apply the tax for that particular split. For example, if I have a transaction that totals $100 and involves three categories of expenses of $20, $30, and $50, I would like to apply the tax for $20 to the $20 category and so forth.
This is easy in Quicken (which is where my experience lies). I enter the amount (or amounts) and add the appropriate tax rate (in my case 7.75 per cent). So if I purchased three items that should be categorized as Personal Care of $25, $15, and $10, I would enter 25+15+10+7.75% and I would have the total of $50 plus tax. The only way I can see to enter this in Moneydance is (25+15+10) +(25+15+10)*.0775. Is there another way to enter this?
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Support Staff 2 Posted by Ben Spencer on 22 Dec, 2009 02:04 PM
Hi
There is another way. If you go to File->Preferences there is an option called "Use VAT/GST" on the general tab. If you check this option and restart Moneydance you can then set the tax rate for each expense category you use and the account the tax should go into to by selecting Tools->VAT/GST Settings. Once you have those settings configured an apply vat check box will be present with each transaction under the check number.
Sincerely
Ben Spencer
3 Posted by cscj01 on 23 Dec, 2009 08:47 PM
Okay, I understand the VAT/GST method. But tax rates can vary for the same expense category depending on taxing location. For example, if I have a category called Clothing, I may purchase clothes in Dallas or Memphis or Charlotte, or ... Tax rates may be different in all these locations, but the purchase still belongs to the category called Clothing. So I need to have a way to override the tax rate I set for the Clothing category. If I can do that, then I can set the rate as the predominant rate and override it when I purchase clothing somewhere the rate differs. Can I do this?
Also, I just need the taxes calculated when I have to split a transaction because I purchase items that belong to several different categories such as Medicine, Groceries, Household, etc. in the same transaction When this happens, I want the tax to be reflected in the same account in which I am entering the transaction. So, if I purchase medicine, groceries, and household products from Costco, I want the split line assigned to the groceries category to have the appropriate taxes included with that split in my Costco account. But I would want groceries taxes included in my Visa account if I purchased groceries with my Visa card at Wal-Mart. I am not sure how that would work with having to assign grocery taxes to an account. That seems counter-intuitive to me. Perhaps I am missing something here.
Are you using account here as in general ledger as opposed to a bank account? If so, I think I may be a little confused as to how this works. While I'm scratching around for some clarity, here's one more question. Is there a way to assign a tax rate to multiple accounts (categories as I used it above) at the same time?
4 Posted by Randy on 23 Dec, 2009 10:21 PM
well, in your example, (25+15+10)*1.0775 would be a little simpler, and yield the same results.
5 Posted by cscj01 on 23 Dec, 2009 11:31 PM
Randy,
You are certainly correct in your observation. What was I thinking? If the answer to the VAT/GST questions don't allow what I need, I'll do what you have suggested.
Support Staff 6 Posted by Ben Spencer on 25 Dec, 2009 01:33 PM
I believe the only way to use the VAT/GST function in this case would be to create sub categories of "Clothing" one for each tax rate.
Sincerely
Ben Spencer
7 Posted by jkwood82 on 02 Jul, 2010 01:50 AM
I see how you are adding sales tax to items. However, I find using parentheses quite cumbersome. In MS Money, I can simply add up the prices of the items & then multiply by 1 & the tax rate which is 6%. For example, if I have an item for $17.99 & another for $7.99, the calculation is 17.99+7.991.06. In MS Money it adds the first two & then multiplies the sum by 1.06, giving me $17.54. It works the same way with many items as with one or two. In MD, however, following this same procedure, it only multiplies the final price in the list by the sales tax, or if I put the sales tax first, it only adds the sales tax to the first price & not to the subsequent ones. I seem to have two choices in MD: Manually multiply each item by 1.06 (e.g. 17.991.06+7.991.06), or start & end the addition portion with parentheses & then multiply as in a spreadsheet cell (e.g. (17.99+7.99)1.06).
Support Staff 8 Posted by Angie Rauscher on 02 Jul, 2010 02:12 AM
Kathy,
Mathematically, the way Moneydance does it is correct. In terms of the order of operations, multiplication comes before addition. Adding parentheses prompts the program to do the operations which are inside them first, which is also mathematically correct. I understand and recognize that it is an adjustment to switch from MS Money, which uses a different format for their formulas. It is unlikely we will change the formulation of our equations to be more similar to MS Money's.
Our feature request and bug reporting system is integrated with our wiki. We invite our users to register and use these systems to help improve Moneydance by bringing bugs to our attention and requesting new features. Users can also vote on tickets, which helps us determine how wide-spread bugs are and which requests have the most demand.
Please let me know if I can be of further assistance, and thank you for your interest in Moneydance.
Angie Rauscher
Moneydance Support
Angie Rauscher closed this discussion on 02 Jul, 2010 02:12 AM.