Linked Tax Types
YouTube: How to Configure Linked Tax Types Item Price Based Taxes in Purchase Orders?
How to Configure Linked Tax Types Item Price Based Taxes in Purchase Orders?
In this tutorial, we will learn how the Linked Tax Types feature works in Purchase Order Configuration and how it refreshes applicable tax rates based on predefined tax rules. This feature provides flexibility to refresh taxes either during item entry or automatically before saving the Purchase Order.
Objective of This Feature
Automatically update applicable tax rates.
Ensure accurate tax calculation based on item rates and tax rules.
Reduce manual tax adjustments.
Improve GST compliance and calculation accuracy.
Control when tax refresh should occur during Purchase Order processing.
Access to Purchase Order Configuration
Open the Purchase Order Configuration window.
Navigate to the Other Settings section.
Locate the option labeled as:
"Linked Tax Types"
This option provides different methods for refreshing Linked Tax calculations.
Option 1: Refresh Row Wise
When Refresh Row Wise is selected, the software automatically refreshes linked tax types immediately whenever an item is entered or modified.
Select Refresh Row Wise from the Linked Tax Types dropdown.
Save the configuration.
Example
Initiate a New Purchase Order.
Enter the required Item.
Observation
The software automatically refreshes the linked tax structure as soon as the item is transacted.
For example:
The item belongs to the GST Apparel Tax Category.
Tax applicability depends on the Item Rate.
If the Item Rate exceeds ₹2,500, the applicable GST rate automatically changes to 18%.
Result
Linked tax types are refreshed immediately.
Applicable tax rates are updated during item entry itself.
Users can view the revised tax calculations instantly.
Option 2: Refresh Before Save
When Refresh Before Save is selected, tax calculations are not refreshed during item entry. Instead, the software refreshes all linked tax types automatically at the time of saving the Purchase Order.
Configuration
Select Refresh Before Save from the Linked Tax Types dropdown.
Save the configuration.
Example
Initiate a New Purchase Order.
Enter the required Item.
Complete the transaction.
Observation
During item entry:
Tax values are not refreshed immediately.
Existing tax values remain unchanged until the document is saved.
Save the Purchase Order.
Open the same Purchase Order in Modify Mode.
Result
Upon saving:
The software automatically refreshes linked tax types.
Applicable tax rates are recalculated according to the configured tax rules.
Updated tax values are reflected in the Purchase Order.
Key Benefits
Automates tax rate updates.
Ensures compliance with dynamic GST tax structures.
Reduces manual tax corrections.
Improves transaction accuracy.
Provides flexibility in tax refresh timing.
Best Practice Tips
Use Refresh Row Wise when immediate tax visibility is required during item entry.
Use Refresh Before Save when working with large transactions to improve entry speed.
Regularly verify linked tax configurations to ensure correct tax calculations.
Review tax values before finalizing Purchase Orders.
Final Outcome
The Linked Tax Types feature in Logic ERP automatically updates tax calculations based on predefined tax rules. Depending on the selected configuration, taxes can be refreshed immediately during item entry (Refresh Row Wise) or automatically when the Purchase Order is saved (Refresh Before Save), ensuring accurate and compliant tax calculations.
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