Party type for paying taxes

ERPNext Accounting
1

Hi everybody!

Wondering what is the best way to go about taxation:

We cannot select customer as party type or supplier so I am guessing we need to create a new party type. What is the best DocType to select for the state and gov tax authorities?

And how to record paying those taxes in the ERP besides last resort journal entry?

Thanks

2

I would use supplier and create a supplier group like “Tax Authorities” to keep them separate.

3

What’s the logic behind this suggestion?

It might work, but tax authorities are neither supplier nor customer.
It’s another type of contact or entity.

4

Supplier is just a name (not a function).

Supplier could be named Vendor or something more generic.

What do you call The phone company or electric company? Sure they
supply services, but are they suppliers?

There is a lot of code that requires an entity to fit into Supplier
or Customer. If you’d like to add additional Entity Types, you’ll
likely need a significant amount of code modifications to keep all
modules working as expected.

I don’t see the ability to add a Party Type to ERPNext, which indicates
you shouldn’t need to or more likely shouldn’t. This is because these types
are hard coded in many places.

5

I read this conceptual choice before in the forums, but very rarely.

If you’d like to add additional Entity Types, you’ll
likely need a significant amount of code modifications to keep all
modules working as expected.

This is where it (somehow) hurts, if different, but kind of similar and “abusable” entities are not quite documented to enable an easy differentiation of which one might fit better.

It’s good to get some hints in this forum for such questions (e.g. like your’s), but this still doesn’t enable one to determine onself the right choice, so the dependence on other people for answering the question doesn’t really diminish with an answer which says “do/try this” but without an explanation enabling independent decisions.

In the end, it’s all in the free code, of course, but in the space in between, some things help further than others. OTOH, that’s life :wink: