I’m currently in the process of looking for new accounting software, so moving over to an ERP system seems like it could be a good long-term option. The main ‘push’ factor is that to support multiple VAT registrations (e.g. UK, DE, FR) I’ve been needing to keep a separate set of books for each, which then makes banking reconciliation quite difficult. Currently I pull sales data into a MySQL database, determine the VAT place of supply, then via API: upload the sales to accounting software, then ‘pay’ the invoices, then pull down paid PDF invoices to send to customers.
I’m trying to find out whether the following are possible with Tryton and if so, how it would be best achieved and whether custom modules would be needed?
- EUR base currency as the company is based in the Eurozone
- Sales in EUR with VAT due to various countries, and also sales in GBP with VAT due to HMRC (and possibly Ireland depending on distance sales in the future)
- Some supplies in USD with reverse charge VAT attributed to EUR accounts
- Multiple invoice prefixes according to VAT ‘place of supply’ (e.g. DE invoices would start DE, FR with FR, GB with UK)
- Automated determination of VAT ‘place of supply’ (e.g. Item sent from German warehouse to a German customer with an address in Germany would have German VAT, but rules are more complicated when cross-border transactions take place)
I think the following are the possible options:
- one set of accounts with sub-accounts, as long as the original currency amounts can be pulled out for reporting (e.g. to allow the correct amount of VAT to be paid to HMRC)
- two separate sets of accounts (one in EUR and one in GBP) with currency conversions defined at certain points (e.g. end of year, or when a VAT return is due)
- one set of accounts for each VAT registration (in that country’s currency)
The two key factors here are that VAT reporting is correct (and can be customised to the requirements of different countries) and that banking reconciliation is possible. Nearly all the software I’ve looked at can’t handle these two things simultaneously; multiple VAT can usually only be handled by treating each registration as a separate entity, and bank accounts can’t be shared between entities.
I’m also looking at how stock can be managed in future with inventory moving between warehouses in different countries, so it effectively needs an automatic ‘sale’ from one VAT registration to another when the warehouse stock moves between countries. This should be able to give an instantaneous ‘value’ of the inventory by using the FIFO method.