ds_quickbooks/app/services/rules.py

rule = '''
### Rule Scenarios 
Impact of Signup Fields on Tax Calculation and Receipt Matching  
Impact of Signup Fields (Country and Province/State) on Tax Calculation and Matching**  
  
**Scenario 1:** User Location (Canada, Ontario) but Receipt from Another Location (e.g., Quebec)
User's Location: Canada, Ontario (for tax and depreciation purposes).
Receipt Location: The receipt comes from Quebec (the tax rules in Quebec are different from Ontario).
What Happens:
The sales tax rate should be applied based on the location of the receipt, not the user's profile location.
**For example:**
The user in Ontario will have 13% HST applied to their purchases.
If the receipt is from Quebec, the QST (Quebec Sales Tax) of 9.975% applies instead.

**Scenario 2:** User Location (Canada, Ontario) and Receipt Location is Different Country (e.g., USA)
User's Location: Canada, Ontario.
Receipt Location: The receipt is from a business in the USA (e.g., New York).
**What Happens:**
Sales Tax should not be applied for international transactions (USA in this case) unless the user is importing or there is a customs duty involved.
The system will not apply a Canadian sales tax to the receipt from the USA, but the foreign exchange (FX) rule will apply because there is a mismatch between currencies (USD vs. CAD).

**Scenario 3:** User Location (USA, New York) but Receipt from Another Location in the Same Country (e.g., California)
User's Location: USA, New York (for tax purposes).
Receipt Location: The receipt is from California (still in the USA, but the sales tax rate is different).
**What Happens:**
Sales tax should be applied based on the location of the receipt, not the user’s location, since the receipt was issued in California.
California may have a different sales tax rate than New York.

**Scenario 4:** User Location (Canada, Ontario) and Receipt Location with No Address Information
User's Location: Canada, Ontario.
Receipt Location: The receipt contains no clear shipping or billing address.
**What Happens:**
If the receipt does not have a clear location, the system will default to the user’s location for sales tax and depreciation.
Action:
Sales Tax: Apply the sales tax rate based on the user's location (Ontario). For example, 13% HST will be applied.
Depreciation: Apply the depreciation rules based on the user’s location (Ontario), even if the receipt doesn’t have address information.

**Summary of Actions in These Scenarios:**
Sales Tax:If the receipt is from a different location (same country or foreign), use the location from the receipt for sales tax calculation.
If the receipt is from a different country, don’t apply sales tax from the user's country but flag the FX discrepancy.
If the location is missing, apply the user’s location sales tax by default.

**Depreciation:** Always apply depreciation rules based on the user’s location, regardless of where the receipt is from.
**FX (Foreign Exchange):** If the receipt is in a different currency, flag the FX difference for manual review but don’t fetch exchange rates.


### Tax Rules:
Four Rules for Tax and Depreciation Handling
### 1. **Sales Tax Rule**  
**Purpose**: To calculate and apply the correct sales tax based on the shipping and billing addresses.  
- **When Billing and Shipping Address are the Same**: Apply the sales tax rate based on the billing address.  
- **When Billing and Shipping Address are Different**: Apply the sales tax rate based on the shipping address.  
  
**Example**:  
1. If the billing and shipping address are in Ontario, the system will apply the 13% HST tax rate based on Ontario's tax rate.  
2. If the billing address is in Ontario but the shipping address is in Quebec, the system will apply the 14.975% QST tax rate based on the shipping address.  
  
### 2. **Foreign Exchange (FX) Rule**  
**Purpose**: To handle discrepancies when transactions and receipts are in different currencies (e.g., USD vs. CAD).  
- **Action**: Identify the currency mismatch, but do not automatically fetch the exchange rate. Flag the FX difference for manual review, allowing the user to approve or adjust the balance.  
**Example**:  
1. A transaction in USD for $100, matched to a receipt in CAD for $125, results in an FX discrepancy of $25.  
2. The system flags the discrepancy for manual review by the user. The user can then approve the difference or adjust the amounts manually.  
  
### 3. **Depreciation Rule**  
**Purpose**: To calculate the depreciation for assets based on the Straight-Line Method (for accounting) or CCA Depreciation (Declining Balance) for tax purposes.  
**Action**:  
- Apply Straight-Line Depreciation (for accounting) across the asset’s useful life.  
- Apply CCA Depreciation (for tax purposes) using a declining balance method.  
**Example**:  
1. Straight-Line Depreciation: An asset purchased for $10,000, with a 5-year useful life and a residual value of $1,000, will have an annual depreciation of:  
- (10,000 - 1,000)/5 = 1,800 per year for 5 years.  
2. CCA Depreciation: A truck purchased for $20,000, eligible for 30% CCA per year. The depreciation will be:  
- Year 1: 20,000 x 30% = $6,000  
- Year 2: (20,000 - 6,000) x 30% = $4,200  
- The depreciation will decline each year as the book value reduces.  
  
### 4. **Meals & Entertainment Tax Deduction Rule**  
**Purpose**: To apply the correct tax deduction for Meals & Entertainment expenses.  
**Action**:  
- For Tax Purposes: Only 50% of the total receipt amount is deductible.  
- For Accounting Purposes: 100% of the total receipt amount is deductible.  
- Sales Tax: The full sales tax will be deducted for accounting purposes.  
**Example**:  
1. A $100 meal receipt for a business dinner:  
- **Tax Purposes**: Only $50 of the total amount is deductible.  
- **Accounting Purposes**: The full $100 is deductible.  
2. If the sales tax on the meal is $12, the entire $12 is included in the accounting deduction, but for tax purposes, the $50 deduction will reflect the adjusted amount after the 50% rule is applied.  
  
### **When Location on Receipt is Different from User's Location** 
**1. Sales Tax**:  
- **Scenario 1**: If the **receipt's location** is different (e.g., receipt from Quebec for a user in Ontario), the **sales tax** is applied based on the **receipt's location** (Quebec sales tax).  
- **Scenario 2**: If the **receipt** is from a different **country** (e.g., USA), the **system flags** the **currency mismatch** but does not apply **Canadian sales tax**.  

**2. Depreciation**:  
- Depreciation is always calculated based on the **user's location**, not the receipt's location.  
- **Depreciation Method** for **Canada (Ontario)**: **CCA method** will apply, regardless of where the receipt comes from.  
  
**3. FX Handling**:  
- If the receipt is in a different **currency** (e.g., USD for a CAD-based user), the system will **flag FX differences** for manual review but won’t fetch exchange rates.  
  
**4. General Process**:  
- When the **receipt location** is different from the **user's location**, ensure that the **tax and depreciation** are correctly applied based on the **receipt's data**.  
- For **foreign transactions**, ensure that **FX differences** are flagged for user review.  
- For **missing location information**, apply **user’s location** by default for tax and depreciation.
'''