Taxable Sales per Customer — Complete User Guide — Two Accounts Web

Comprehensive guide for generating, analysing, and understanding the Taxable Sales per Customer report — a per-customer breakdown of taxable sales grouped by Tax Code

Table of Contents

1. What Is the Taxable Sales per Customer Report?
   • Structure
2. Enabling from the Customize Menu
3. Field-by-Field Guide
   • Report Header Fields
4. Settings Configuration
   • Tax Codes
   • Customers
5. Creating a Taxable Sales per Customer Report
6. How the Taxable Sales per Customer Is Calculated
   • Transaction Loading
   • Per-Tax-Code Then Per-Customer Grouping
   • The Three Columns
   • Sign Convention and Account Amount
7. Drill-Down Capabilities
8. Sample Data and Report Output
   • Sample Setup
   • Report Output
   • Verification of Calculation
9. Common Issues and Solutions
10. Accounting Regulation Compliance

1. What Is the Taxable Sales per Customer Report?

The Taxable Sales per Customer report shows every taxable sale transaction grouped first by Tax Code, then by Customer. For each customer, it shows the net sales amount, the tax collected, and the total sales amount — all at the selected Tax Code rate.

This is the primary report for auditing output VAT per customer. It helps verify that every customer has been correctly charged the right VAT rate and that the output VAT declared matches the aggregate of all customer invoices.

1.1 Structure

The report shows taxable sale transactions organised in a two-level hierarchy:

• Level 1 — Tax Code: Each Tax Code used in the period becomes a section heading
• Level 2 — Customer: Within each Tax Code, transactions are grouped by Customer
• Each customer row shows three amounts: Net Sales, Tax on Sales, Total Sales
• Tax Code totals — each Tax Code section shows the total for that rate
• Grand total — the bottom row sums across all Tax Codes

2. Enabling from the Customize Menu

The Taxable Sales per Customer report appears under:

• Reports → Tax Codes → Taxable Sales per Customer

The report is only visible when at least one Tax Code has been created in Settings. Once a Tax Code exists, the report appears automatically. No toggle in Customize Menu is needed.

3. Field-by-Field Guide

3.1 Report Header Fields

Location: Reports → Tax Codes → Taxable Sales per Customer → New Report

4. Settings Configuration

4.1 Tax Codes

Location: Settings → Tax Codes

Tax Codes define the sales tax / VAT rates. Each Tax Code becomes a section in the report. Only transactions with a Tax Code assigned appear.

4.2 Customers

Location: Settings → Customers

Customer records are the grouping level within each Tax Code section. Each customer with taxable sale transactions in the period appears as a row within the relevant Tax Code section.

5. Creating a Taxable Sales per Customer Report

1. Ensure at least one Tax Code exists in Settings → Tax Codes
2. Ensure customers exist and have sale transactions with Tax Codes
3. Go to Reports → Tax Codes → Taxable Sales per Customer
4. Click New Report
5. Enter a Description (optional)
6. Enter the From Date and To Date
7. Choose the Accounting Method — Accrual or Cash Basis
8. Click Save
9. The report generates showing each Tax Code section with customers and their sale totals

6. How the Taxable Sales per Customer Is Calculated

6.1 Transaction Loading

The system loads all General Ledger transactions within the period and calculates Cost of Goods Sold. If Cash Basis is selected, sales invoices are converted to cash basis by matching them to receipts. Only transactions that meet ALL three conditions are included:

1. Have a Tax Code assigned
2. Have a Customer reference
3. Are one of the following document types: Sales Invoice or Credit Note

6.2 Per-Tax-Code Then Per-Customer Grouping

Transactions are first grouped by Tax Code. Within each Tax Code, transactions are further grouped by Customer. For each customer, the net sales amount, tax amount, and total amount are calculated and displayed as a single row.

6.3 The Three Columns

6.4 Sign Convention and Account Amount

This report uses the account currency amount rather than the base currency amount. This means:

• If the customer's transactions are in a foreign currency, the amounts are shown in the transaction's currency
• The sign is reversed (× −1) because sales are credit entries (negative in the GL)
• The drill-down viewer also uses account currency amounts for consistency

7. Drill-Down Capabilities

The Net Sales and Tax on Sales columns are clickable. Clicking any amount opens a detailed transaction viewer showing the individual sale transactions behind that figure.

Each drill-down view displays:

• Date — the transaction date
• Transaction — the document type and reference
• Customer — the customer name
• Description — transaction narrative
• Amount — the account currency amount (sign-flipped)
• Tax Code — the tax code applied

8. Sample Data and Report Output

8.1 Sample Setup

A trading company uses two Tax Codes — VAT-15 (15% standard) and VAT-5 (5% reduced). Sales were made to three customers during January 2026:

Tax Codes Defined

Transactions

GL Posting for Each Transaction

SI Customer A (VAT-15):      Dr AR 115,000 = Cr Revenue 100,000 + Cr Tax 15,000
SI Customer B (VAT-5):       Dr AR 52,500  = Cr Revenue 50,000 + Cr Tax 2,500
SI Customer A (VAT-5):       Dr AR 210,000 = Cr Revenue 200,000 + Cr Tax 10,000
CN Customer A (VAT-15):      Dr Revenue 10,000 + Dr Tax 1,500 = Cr AR 11,500
SI Customer C (VAT-15):      Dr AR 92,000  = Cr Revenue 80,000 + Cr Tax 12,000

8.2 Report Output

Taxable Sales per Customer — ABC Trading
For the period: 1-Jan-2026 to 31-Jan-2026
Accrual basis

                                  Net Sales      Tax on Sales    Total Sales
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

VAT-15

  Customer A                           90,000            13,500         103,500
  Customer C                           80,000            12,000          92,000

VAT-15 Totals                         170,000            25,500         195,500
                                      ───────           ───────         ───────

VAT-5

  Customer A                          200,000            10,000         210,000
  Customer B                           50,000             2,500          52,500

VAT-5 Totals                          250,000            12,500         262,500
                                      ───────           ───────         ───────

Grand Total                           420,000            38,000         458,000

8.3 Verification of Calculation

VAT-15 @ 15%:
  Customer A:   100,000 − 10,000 (CN) = 90,000 Net × 15% = 13,500 Tax ✓
  Customer C:   80,000 Net × 15% = 12,000 Tax ✓
  Total:        170,000 Net, 25,500 Tax ✓

VAT-5 @ 5%:
  Customer A:   200,000 Net × 5% = 10,000 Tax ✓
  Customer B:   50,000 Net × 5% = 2,500 Tax ✓
  Total:        250,000 Net, 12,500 Tax ✓

GRAND TOTAL:
  Net Sales:     90,000 + 80,000 + 200,000 + 50,000 = 420,000 ✓
  Tax on Sales:  13,500 + 12,000 + 10,000 + 2,500 = 38,000 ✓
  Total Sales:   103,500 + 92,000 + 210,000 + 52,500 = 458,000 ✓
  Net × rates: (170,000 × 15%) + (250,000 × 5%) = 25,500 + 12,500 = 38,000 ✓

DR = CR (all transactions):
  SI Customer A (VAT-15):   Dr AR 115,000 = Cr Revenue 100,000 + Cr Tax 15,000 ✓
  SI Customer B (VAT-5):    Dr AR 52,500 = Cr Revenue 50,000 + Cr Tax 2,500 ✓
  SI Customer A (VAT-5):    Dr AR 210,000 = Cr Revenue 200,000 + Cr Tax 10,000 ✓
  CN Customer A (VAT-15):   Dr Revenue 10,000 + Dr Tax 1,500 = Cr AR 11,500 ✓
  SI Customer C (VAT-15):   Dr AR 92,000 = Cr Revenue 80,000 + Cr Tax 12,000 ✓
  Total Debits:   115,000 + 52,500 + 210,000 + 11,500 + 92,000 = 481,000
  Total Credits:  115,000 + 52,500 + 210,000 + 11,500 + 92,000 = 481,000 ✓

9. Common Issues and Solutions

9.1 No Data Appears

Cause: No sale transactions with a Tax Code and Customer were found within the selected date range.

Solution: Verify that Tax Codes exist, customers exist, and sales invoices have been created with a Tax Code selected on line items. The report only includes Sales Invoice and Credit Note transactions.

9.2 Customer Does Not Appear

Cause: The customer's sale transactions may not have a Tax Code assigned, or the transaction type is not a Sales Invoice or Credit Note.

Solution: Check that the customer's sales invoices have a Tax Code on the line item. Receipts alone (without a Sales Invoice) are not included — they do not carry a Tax Code or a Customer reference on the GL entry.

9.3 Amounts Differ from Tax Summary

Cause: This report uses account currency amounts while the Tax Summary uses base currency amounts. For foreign currency transactions, the two will differ by the exchange rate effect.

Solution: Use this report for customer-level auditing (where the customer's currency is relevant). Use the Tax Summary for VAT return preparation (where base currency amounts are required).

9.4 Credit Note Shows Negative Amounts

Cause: A Credit Note reduces the amount owed by a customer. It is shown as a negative adjustment within the same Tax Code and Customer group, correctly reducing the net totals.

Solution: This is correct. Credit Notes represent returns or reductions in the sale value, and their tax amounts are also reversed.

9.5 Cash Basis Shows Different Amounts

Cause: Under Cash Basis, sales invoices are converted to cash basis by matching them to receipts. The net and tax amounts reflect the received portion, not the invoiced portion.

Solution: Use Accrual Basis for VAT return purposes (output VAT is due when the invoice is issued). Use Cash Basis only if your business is registered on the cash basis for VAT.

9.6 Net Sales Include Credit Note Adjustments

Cause: Credit Notes within the same Tax Code and Customer are netted against invoices in the Net Sales column, which may result in a lower net figure than expected.

Solution: This is correct. The Net Sales column reflects the net position after all adjustments (invoices minus credit notes). Drill into the amount to see the individual invoices and credit notes behind the net figure.

10. Accounting Regulation Compliance

10.1 IFRS 15 — Revenue from Contracts with Customers

10.2 IAS 12 — Income Taxes

10.3 NBR VAT Act 2012 (Bangladesh)

10.4 DR = CR Verification

Sample Data Verification:

  VAT-15 Total:  170,000 Net × 15% = 25,500 Tax ✓
  VAT-5 Total:   250,000 Net × 5% = 12,500 Tax ✓
  Combined:      38,000 Tax = (170,000 × 15%) + (250,000 × 5%) ✓

  All transactions DR = CR:
    SI Customer A (VAT-15):  115,000 = 100,000 + 15,000 ✓
    SI Customer B (VAT-5):    52,500 = 50,000 + 2,500 ✓
    SI Customer A (VAT-5):   210,000 = 200,000 + 10,000 ✓
    CN Customer A (VAT-15):   10,000 + 1,500 = 11,500 ✓
    SI Customer C (VAT-15):   92,000 = 80,000 + 12,000 ✓

  Total Debits:   481,000
  Total Credits:  481,000
  DR = CR ✓

End of Taxable Sales per Customer Guide