How to Create a Template for Taxes and Other Charges in Purchase Transactions?

You can add other charges and landed costs for example Freight etc in purchase transactions directly. But if there is a standard set of other charges and landed costs which are always applicable, then it would be convenient to create a template for other charges and landed costs and select the same in transactions. This would be more convenient to use and save time.

To create such a template follow steps as shown below.

Click on "New Other Charges" to get a screen as shown below. Mention the title of the template which will be selected in the transaction to pull the tax details. 

You can select Category based on the following requirements:

1. For Total - when you want to add amount to your invoice total and liability but not into items valuation.
2. For Valuation - when you want the landed costs only to be considered for stock valuation and not include in the net total.
3. For Both - when you want to consider landed costs for stock valuation as well as add to the net total.

You can select Type based on the following requirements:

1. Actual - when you know the actual amount of tax or other charge to be added to the net total, mention the amount in the Rate column.
2. On Net Total - will be selected when a tax percentage has to be calculated on the net total.
3. On Previous Row Amount - will be selected if a tax percentage needs to be calculated over the previous row tax amount . In this case mention the Row Id.
4. On Previous Row Total - will be selected when a tax percentage needs to be calculated over the total of net total and the previous row tax amount. In this case also mention the Row Id

Select the relevant tax account head applicable. The account head should be created under Chart of Accounts. The tax rate will be mentioned in the account head and will get fetched under the Rate column on selecting the same.

Select the relevant account head of the landed cost or applicable. The account head should be created under Chart of Accounts. The  rate will be mentioned in the account head and will get fetched under the Rate column on selecting the same.

Save the template. You can now pull the other charges in your purchase transactions. Lets open a Purchase Order and select the template we just created above.

Select the template and click on Get Tax Detail button. In this way you can fetch the landed costs in Purchase Receipts and Purchase Invoices as well.

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