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ekmungai / eloquent-ifrs

Eloquent Double Entry Accounting with a focus on IFRS Compliant Reporting
MIT License
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How to Add Service Charge #90

Closed abanghendri closed 2 years ago

abanghendri commented 3 years ago

Hi @ekmungai , I wonder how to add Service Charge or other fee to the transaction? because service charge is categorize as Revenue while Vat is Expense?

Thank you

ekmungai commented 2 years ago

HI @abanghendri,

I'm afraid you have it wrong, while you are right about Service Charges, Vat is a rather special category in that rather than an expense, it is a cost that is passed on to the consumer of the entity. I hesitate to go into much detail as I am not familiar with the tax rules in your locality and would not want to mislead you. I suggest that you consult an accountant near you for a clearer explanation.

Cheers