# Calculation

**YouTube:** [How to Configure Bill-Wise or Item-Wise Calculation of Taxes and Discounts in Sale Bill ?](https://www.youtube.com/watch?v=o5hQ95ajRuY)

## How to Configure Bill-Wise or Item-Wise Calculation of Taxes and Discounts in Sale Bill?

 In this tutorial, we’ll guide you through the **Calculation Mode** feature in **Logic ERP** and how to configure it for your sales billing process.

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### Access Sales Voucher Configuration

* Navigate to **Sales Voucher Configuration**.
* Select the **relevant Billing Series**.
* Locate the option labeled **"Calculation"**.
* You will find two modes available:
  * **Bill Wise**
  * **Item Wise**

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2Fd2Ht5ZMnfbkcK8evyiM7%2FSetup%20-%20Calculation.png?alt=media&#x26;token=f641be11-24a5-45fa-898c-75af6667f9d6" alt=""><figcaption><p>As mentioned above, follow the given steps and select the appropriate option from the dropdown as per your requirement.</p></figcaption></figure>

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### **Bill Wise Calculation Mode**

* Select **Bill Wise** in the Calculation setting.
* Then, navigate to the Billing and create a new Sale Bill.
* Choose a **Tax Region** and define the **Tax Type** from the dropdown next to it.

How It Works:

* Taxes are applied **uniformly** based on the selected **Tax Type** for the **entire bill**, not per item.
* All applicable **discounts** are also applied **bill-wise**.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FkefxPlOyhni4qcKmidvV%2FBill%20Wise%20CD%20and%20Tax.png?alt=media&#x26;token=42775b1a-dc88-4063-9a3d-efc9ae8d1518" alt=""><figcaption><p>The image shows that despite the second item exceeding ₹1000, 5% GST is applied due to Bill Wise tax settings, which apply a uniform rate to all items.</p></figcaption></figure>

Example:

* Two items are billed under the **Apparel Trade** category:
  * **Item 1**: Price < ₹1000 → 5% Tax
  * **Item 2**: Price > ₹1000 → Still 5% Tax
* Reason: The selected **Tax Type** in the bill header overrides item-specific tax rates.

#### When to Use:

* Ideal when taxes and discounts should apply to the **total value** of the invoice.
* Common in industries with **uniform tax slabs or discount structures**.

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### **Item Wise Calculation Mode**

* Select **Item Wise** in the Calculation setting.

How It Works:

* Taxes are applied **individually**, based on each item's **tax configuration** in the **Item Master**.
* Discounts can also be **set and applied item-wise**.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2F4Yr6iQH0kgPnUKR0aw0r%2FItem%20Wise%20Tax%20%26%20CD.png?alt=media&#x26;token=cf264c41-51f5-4d18-9049-769eba8507d4" alt=""><figcaption><p><strong>The image shows item-wise tax application, with each item taxed per its defined rate.</strong></p></figcaption></figure>

Example:

* Each item is taxed according to its **actual tax slab**.
* Discounts vary per item and are **not dependent** on the overall bill total.

When to Use:

* Useful when different items in the bill have **distinct tax rates** or **discounts**.
* Ideal for mixed-item transactions across **multiple tax brackets**.

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### Summary Table

| **Calculation Mode** | **Tax Application**       | **Discount Application** | **Use Case**                            |
| -------------------- | ------------------------- | ------------------------ | --------------------------------------- |
| Bill Wise            | Based on bill header      | On total bill            | Uniform tax/discount on entire invoice  |
| Item Wise            | Based on each item master | Individually per item    | Mixed tax rates and discount structures |