Sales Taxes and Charges Template
Sales Taxes and Charges Template
Each item you sell may be subject to sales taxes and other fees.
Both sales orders and sales invoices can be made using the templates created from this form.
You must set the Account Type field for Tax Accounts to "Tax" in order to use those accounts in tax templates. ERPNext configures taxes using templates. You can also set up taxes for other types of fees that might be included on your invoices (such as shipping, insurance, etc.).
To learn more about tax setup, go to this page.
Go to: to view the Sales Taxes and Charges Template.
Home > Selling > Settings > Sales Taxes and Charges Template
To know about setting up taxes visit this page
1. How to add Sales Taxes/Charges via a template
Remember that there are already templates for many of the most used taxes before generating a new one.
Click New in the Sales Taxes and Charges Template list.
Give the Tax a title name.
Set the method of tax calculation and the tax rate under type. Under type, there are five options for which tax will be computed.
Actual: You can just input the expense's total.
On Net Total: On the sum of all the items' net prices.
This is used to compound the charges on the previous row's amount. Cess fees, for instance, that are in excess of the amount to which tax has already been applied in the previous row.
The same as above, but applied to the entire bill rather than just the sum of individual items. On Previous Row Total
Tax is determined based on item quantity using the formula Tax Rate * Item Quantity. For instance, if the tax rate is 2% and there are 1 items, the tax rate will be 4. If there are 5 items, the tax rate will be 10.
Choose a tax rate-specific account head or construct your own.
By choosing default, this template will be used automatically for new Sales transactions.
Save.
Is Inter State: regard India. The template with "Is Inter State" checked will be set as the taxes template when a customer is selected in a sales invoice or delivery note and the GST codes of the place of supply and the customer shipping address don't match. The default taxes template will be used if the place of supply and the shipping address are the same. Moreover, while choosing a supplier, purchase invoice templates are set based on addresses. For instance, IGST
2.1 Sales Taxes and Charges table
- Consider Tax or Charge for: For the sum of all elements, use total. Value assigned to each item. Apply tax or charge to both the valuation and the total. To learn the distinction, read this article.
- Reference Row #: You can choose the row number that will be used as the basis for this computation if tax is based on "Previous Row Total" (default is the previous row).
- Is this Tax included in Basic Rate?: The tax amount will be regarded as already being included in the Print Rate / Print Amount in the Transaction's Item table if the box is ticked. When you want to give your consumers a pricing that includes tax, this is helpful. The system computes the Net Amount by subtracting the amount of tax to be applied, then computes the tax on it, to account for tax inclusive rates.
- Account Head: The ledger account in which this tax will be recorded. The rate will be filled automatically if you choose VAT or any other pre-set headings.
- Cost Center: It must be booked against a Cost Center depending on whether the tax or charge is an expense (like shipping) or an income.
Description: Tax description (which will be printed on invoices and quotes).
Rate: The Tax rate, eg: 14 = 14% tax.
- Amount: The amount of tax to be applied, for example, 100.00 = 100 tax
The standard tax rate for all Items will be the tax rates you specify in the template. Setting an Item Tax Template to the Item or Item Group will override the default tax rate if there are Items that are expected to have differing rates.