Move Zero to Incl. Tax for discounted items

YouTube: How to Configure Moving Zero to Inclusive Tax for Discounted Items in a Sale Bill?

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.

Access 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.

Assign "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

This feature helps in maintaining GST compliance, accurate reporting, and clean billing logic when working with inclusive pricing and discounts.