# Move Zero to Incl. Tax for discounted items
**YouTube:** [How to Configure Moving Zero to Inclusive Tax for Discounted Items in a Sale Bill?](https://www.youtube.com/watch?v=nI4NYLLI3lY)
## How to Configure Moving Zero to Inclusive Tax for Discounted Items in a Sale Bill?
This tutorial explains how to configure and use the **"Move Zero to Incl. Tax for Discounted Items"** option in Logic ERP to maintain consistent and compliant tax calculations when discounts are applied to tax-inclusive items.
***
### A**ccess the Configuration**
* Open **Sale Voucher Configuration**.
* Select the relevant **Billing Series**.
* Navigate to **Other Settings 3**.
* Locate the setting: **“Move Zero to Incl. Tax for discounted items”**
* This setting offers **three parameters**:
* **None**
* **Tax 1**
* **Tax 2**
***
### **Purpose of the Feature**
* This feature ensures that **discounted items** remain **tax-inclusive**, preserving the integrity of tax calculations.
* It prevents pricing mismatches by moving **zero-value adjustments** (caused by discounts) to a **specific tax field**.
***
### **Understanding the Parameters**
You will find **three selectable parameters** under this setting:
1. **None**
* No inclusive tax field is selected.
* **No adjustment** is made to any tax field.
* Used when zero-value amounts should not affect tax fields.
2. **Tax 1 / Tax 2 / etc.**
* Selects which **inclusive tax field** should absorb the **zero-value adjustment** caused by discounts.
* Ensures that tax remains proportionate and compliant even after applying cash discounts.
***
### **Understand Inclusive Tax Structure**
* Navigate to **Setup\Setup Taxes** and click to "**Setup Tax Types (Sale)".**
* Review the **inclusive tax types** configured in the system.
* You’ll find:
* **Tax rates**, **Account mapping**, and **GST classification**.
* Identification of **inclusive tax types** for proper selection.
***
### Implement **with Parameter Set to "None"**
* Go to the billing screen.
* Apply a **cash discount (e.g., 5%)** on a tax-inclusive item.
* Go to the **View Total** screen.
* Observe:
* Tax is calculated in **inclusive mode** (appears as negative adjustment).
* No zero-value adjustment is made in any tax field.
* The discount does **not reduce any specific tax field**.
> Use **Configuration > Calculation Mode** to dynamically view and adjust tax calculations during billing.
***
### A**ssign "Tax 2" as Inclusive Tax Field**
* Return to **Sale Voucher Configuration**.
* Under **Move Zero to Incl. Tax for discounted items**, set the parameter to **Tax 2**.
* Save and reopen the billing screen.
***
### **Apply Discount and Observe Behavior**
* Apply a **5% cash discount**.
* Click **Save**.
* In the **View Total** screen:
* The **Tax 2** field is **reduced to zero**, reflecting the discounted amount adjustment.
* The system recalculates the remaining tax fields proportionately.
* Ensures the **net amount and tax liability remain accurate**.
***
### **Conclusion**
| Parameter | Behavior |
| ----------------- | ------------------------------------------------------------------ |
| **None** | No zero-value adjustment to any tax field |
| **Tax 1 / Tax 2** | Applies zero-value discount effect to selected inclusive tax field |
This feature helps in maintaining **GST compliance**, **accurate reporting**, and **clean billing logic** when working with **inclusive pricing and discounts**.
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