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Regular Member
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Accepted Solution

Bug: Tax change does not work with recurring invoices.

[ Edited ]

We had to change to a lower tax on April 1.
I had prices with setting 'taxes excluded' before. I changed all the prices for all the items to 'taxes included' with the new tax.

All settings are correct. Even when you look at the individual service settings with the clients.

I then tested the new settings. Manually made invoices and everything was correct.
Yet all our monthly (recurring) invoices are sent to the clients with the previous tax!

How can I delete those invoices and have UCRM make the correct ones? We can not use an invoice number twice in Europe. We can also not delete existing invoices. So I need 'credit notes' for these invoices and then new recurring and correct invoices.

Please don't tell me that we have to make all the invoices manually?

 


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Regular Member
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Re: Bug: Tax change does not work with recurring invoices.

This is actually not a bug but the way UCRM calculates taxes with price setting 'taxes included'.

When you want an exact tax calculation as if you were 'adding' tax to an existing price without tax, best thing to do is remove 'Decimal places for tax coefficient' in the billings settings.

That way UCRM calculates as many decimals as required to get the tax completely correct.

 

@UBNT-Ondra explained it to me like this:

 

Decimal places for tax coefficient

Tax coefficient may be used only for "Tax inclusive pricing".
    It is used to calculate the taxed amount and consequently, also the net price from the given gross price. (The taxed amount = gross price * tax coefficient.)
    The tax coefficient is calculated as <taxRate> ÷ (100 + <taxRate>).

You may need to round the tax coefficient by defining decimal place count. You may also leave this option blank, then no rounding will be applied to the coefficient.
    However, be advised that you may need to set up this option according to the legislative requirements in your country.

Example: For 21% tax, the coefficient is: 21 ÷ (100 + 21) = 0.173553719. If you set the "Decimal places for tax coefficient" to 4 the coefficient will be rounded to 0.1736.

 

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Regular Member
Posts: 685
Registered: ‎03-08-2014
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Re: Bug: Tax change does not work with recurring invoices.

I can confirm that there is a bug for sure when taxes for items have changed.

Recurring invoices do not contain the new tax. Also, there is no way to force this. We have tried this by deleting the last invoice, changing the date for the last invoice in the service for that client, then generate the recurring invoice again.

Even when all settings are correct for a client, recurring services that were created before the tax change still apply the old tax.

We really need an urgent fix for this.

Ubiquiti Employee
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Re: Bug: Tax change does not work with recurring invoices.

Please, verify, the "old tax" is not used anywhere. Check:
* default tax in System > Billing > Taxes
* client's tax
* service tax

What was the order of changes you made?
First, switch pricing mode from Exclusive to Inclusive
Then, you changed the tax value? - Did you use the "add and change" feature?
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Re: Bug: Tax change does not work with recurring invoices.

[ Edited ]

@UBNT-Petr 

 

We need both taxes. Old and new. And we need them to be applied correctly.

 

 

Please note this in the help files for UCRM: 

Whenever a tax is set for an Item (Service plan, Product, etc.) this tax will take precedence over any client-specific taxes. In other words, when the system detects there are two possible ways how to apply tax to an item (from client and from item settings), the tax defined for the item in system settings will be applied.

 

All settings are correct. Manually made invoices are correct too. Recurring invoices not.

I have first set the complete billing system to price tax inclusive.

Then changed all prices for all the items and services to the correct total price (still with the old tax).

Then added the new reduced tax in the system.

Then changed all the services to use the new tax. Products that are not actual 'services' but goods need to be with the old tax. That is correct in the system too.

Then tested with a manual invoice. Everything worked correctly. Both taxes were applied as intended.

 

On April 1 all recurring invoices for services have been sent with the old tax. Nowhere is the new tax applied.

 

You can check all settings, services and invoices in our system via TeamViewer. Your account is still active.

 

Ubiquiti Employee
Posts: 1,152
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Re: Bug: Tax change does not work with recurring invoices.

Hello @jma, thanks for reporting this. We found the bug and fix will be released soon.

Just to confirm, you did not use "Add and replace" feature in the tax edit form, but rather configured the tax to be used on service plan, is that correct? If so, the bug will be fixed, if not, this will require further research.

Regular Member
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Re: Bug: Tax change does not work with recurring invoices.

@UBNT-Ondra I did not use 'add and replace'. I have added a new tax and then changed all the items and services I wanted to use that new tax.

 

PS: we have seen that new services result in correct recurring invoices. The existing services from before the change of the items do not.

Ubiquiti Employee
Posts: 1,152
Registered: ‎03-21-2016
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Re: Bug: Tax change does not work with recurring invoices.

@jma  There was actually some confusion on my part about how this should work, we will be revisiting this, as the bug I thought I found is not actually a bug. Will let you know.

Regular Member
Posts: 685
Registered: ‎03-08-2014
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Re: Bug: Tax change does not work with recurring invoices.

This is actually not a bug but the way UCRM calculates taxes with price setting 'taxes included'.

When you want an exact tax calculation as if you were 'adding' tax to an existing price without tax, best thing to do is remove 'Decimal places for tax coefficient' in the billings settings.

That way UCRM calculates as many decimals as required to get the tax completely correct.

 

@UBNT-Ondra explained it to me like this:

 

Decimal places for tax coefficient

Tax coefficient may be used only for "Tax inclusive pricing".
    It is used to calculate the taxed amount and consequently, also the net price from the given gross price. (The taxed amount = gross price * tax coefficient.)
    The tax coefficient is calculated as <taxRate> ÷ (100 + <taxRate>).

You may need to round the tax coefficient by defining decimal place count. You may also leave this option blank, then no rounding will be applied to the coefficient.
    However, be advised that you may need to set up this option according to the legislative requirements in your country.

Example: For 21% tax, the coefficient is: 21 ÷ (100 + 21) = 0.173553719. If you set the "Decimal places for tax coefficient" to 4 the coefficient will be rounded to 0.1736.

 

New Member
Posts: 20
Registered: ‎08-21-2017

Re: Bug: Tax change does not work with recurring invoices.

Hi Peter...we have 3 taxes setup currently but we want to delete one but it says we cant because it says item is in use. However I have gone through each of our clients existing recurring services and the fee we want to delete is not in use anywhere. Is there a way to find where this fee is being used so we can delete it?

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Ubiquiti Employee
Posts: 3,511
Registered: ‎12-10-2015
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Solutions: 271

Re: Bug: Tax change does not work with recurring invoices.

Hi @daveknap1 a tax can be linked to service plan, service, product or client and also any invoice.
So you would need to unlink or delete all these releated items or you could use the "Replace tax" feature which is very useful for example when you need to change the tax from 5% to 7% - This action will disable old tax and replace it with newly created one (already created invoices won't be affected).
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