# Set Inclusive Tax Calculation for Sales Orders
**YouTube:** [How to Set Inclusive Tax Calculation for Sales Orders?](https://www.youtube.com/watch?v=YvsDekd9hJU)
## How to Set Inclusive Tax Calculation for Sales Orders?
In this tutorial, we will learn how to **set up inclusive tax calculation in the Sales Order module of Logic ERP**. Let’s get started.
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### Applying Inclusive Tax in Sales Order
* Open the **Sales Order** module.
* Enter the **Customer Name**.
* Select the **Inclusive Tax Region**.
* Proceed with transacting the item.
* Now go to the **Other Details** section.
* Here, you can observe that **inclusive tax calculation is applied**, meaning the **gross amount already includes tax**.
The system internally calculates and adjusts the tax components while ensuring that the **net amount remains equal to the gross amount**.
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### Configuring Inclusive Tax Calculation
To configure inclusive tax calculation, follow these steps:
**Tax 2 Configuration (Inclusive Tax)**
* Open **Configuration**.
* Navigate to **Calculation Mode for Tax 2**.
* Set **Calculation Position for Percentage Fields** to **Cumulative**.
* Define the **Calculation Method** as **Minus (–)**.
* Set **Calculation Type** to **Item Wise Inclusive**.
This configuration enables inclusive tax calculation at the item level.
You may also configure:
* **Round Off**
* **Description**
as per your business requirements.
**Tax 1 Configuration**
* Set **Calculation Position for Percentage Fields** to **Position Number**.
* Enter the **Position Number as 5**.
> This position number is determined by counting all fields upward up to Tax 2.\
> Since the total number of fields up to Tax 2 is 5, the position number is set accordingly.
* Set **Calculation Method** to **Plus (+)**.
* Set **Calculation Type** to **Default**.
* Configure **Round Off** and **Description** if required.
**Tax 3 Configuration**
* Maintain **exactly the same settings as Tax 1** to ensure consistency in calculation.
***
### Conclusion
This is how you can successfully **configure inclusive tax calculation in the Sales Order module of Logic ERP**.\
With this setup:
* Tax is included within the item rate
* The system accurately splits tax components internally
* The gross and net amounts remain aligned
This ensures **accurate tax handling and compliant billing** for inclusive tax regions.
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