# Calculation

**YouTube:** [How to Configure Bill wise or Item wise Calculation Mode in Purchase ?](https://www.youtube.com/watch?v=TaiXaE8U9hs)

## How to Configure Bill wise or Item wise Calculation Mode in Purchase?

 In this tutorial, we will learn how to configure **calculation modes** in the **purchase voucher** to ensure accurate tax and discount application.

### **Accessing Calculation Settings**

* Navigate to **Purchase Voucher Configuration**.
* Click on **Other Settings-2**.
* Locate the **Calculation Mode** option.

<figure><img src="/files/KWvY7FTz59woIKOf5JM5" alt=""><figcaption></figcaption></figure>

### **Understanding Calculation Modes**

There are **two calculation modes** available:

**Bill Wise Calculation**

* Taxes and discounts apply to the **total bill amount**.
* The tax type selected in the **header** determines the tax rate for all items.
* Example:
  * **Item 1:** ₹799(5% GST)
  * **Item 2:** ₹1299 (Normally 12% GST)
  * Since **Bill Wise Calculation** is enabled, **5% GST applies to both items**.
* Discounts also apply to the total bill amount.
* This method is used when tax and discounts are applied at the transaction level.

<figure><img src="/files/dAfIlqFAQC28LhUvIu9O" alt=""><figcaption></figcaption></figure>

**Item Wise Calculation**

* Taxes are applied based on **individual item rates** defined in the master.
* Each item will have **its own tax and discount rate** applied.
* Example:
  * **Item 1:** ₹599 (5% GST)
  * **Item 2:** ₹1299(12% GST)
* Discounts can also be set at the **item level**.

<figure><img src="/files/HrhrQWcdEuRfI3Wv9uJT" alt=""><figcaption></figcaption></figure>

### **Conclusion**

The **Bill Wise** method is useful for uniform tax applications, while **Item Wise** ensures accuracy based on individual item rates. Choose the mode based on your business requirements in **Logic ERP**.<br>


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