How to configure the tax based on Item Master?
Tax based on Item Master
In certain businesses like Pharmacy, the tax calculation for all the items in an invoice may not be the same. For example, a single invoice may contain many different items. The tax calculation for each item may be based on MRP (inclusive and exclusive) or based on the Purchase price (inclusive and exclusive).
Use the configuration provided below to calculate the purchase tax based on Item Master.
Configuration: Tools >> Configuration >> Purchase >> Common settings (Purchase/Receipt Note) >> Purchase tax calculation based on (Tax on purchase price or Tax on MRP or Tax part of MRP >> Item Master.
Item Master Configuration
1. Click Inventory >> Masters >> Items [CTRL + I]. The Item Master screen is displayed.
2. Click Tax tab.
3. In the Tax calculation field, press F2 key. The tax calculation drop-down list is displayed. Select from the following options-
In certain businesses like Pharmacy, the tax calculation for all the items in an invoice may not be the same. For example, a single invoice may contain many different items. The tax calculation for each item may be based on MRP (inclusive and exclusive) or based on the Purchase price (inclusive and exclusive).
Use the configuration provided below to calculate the purchase tax based on Item Master.
Configuration: Tools >> Configuration >> Purchase >> Common settings (Purchase/Receipt Note) >> Purchase tax calculation based on (Tax on purchase price or Tax on MRP or Tax part of MRP >> Item Master.
Item Master Configuration
1. Click Inventory >> Masters >> Items [CTRL + I]. The Item Master screen is displayed.
2. Click Tax tab.
3. In the Tax calculation field, press F2 key. The tax calculation drop-down list is displayed. Select from the following options-
- As per Purchase formula (Not for sales)- To calculate tax based on purchase formula
- Tax on Purchase price [Exclusive] (Not for sales) - To calculate tax based on purchase price
- Tax on MRP [Exclusive] (Not for sales)- To calculate tax based on MRP
- Tax part of MRP [Inclusive]- To calculate tax based on MRP tax inclusive
Note: By default, the option As per Purchase formula (Not for sales) is enabled.
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