Monday, January 30, 2012

How to Use Tax Inclusive Rate Functionality in ERPNext?

Tax inclusive rate functionality allows user to enter tax inclusive rate  items rate table.

As per the standard, user has to enter items rate before tax in pricelist which is fetched in items ref rate.

But for company into retail business, users only know tax inclusive rate of an item. They can use this feature which will back calculate tax and ref rate for them.

To back calculate taxes from tax inclusive rate, you will need to:

1. Mention taxes applicable on item level.
2. Tax inclusive rate in rate / basic rate column on item level.
3. Mention all the possible tax ledgers in tax table and check mark "include in print rate".


When need to calculate discount:

When need to offer discount to customer, mention tax inclusive rate in ref rate instead of basic rate.