# Setup Calculation Configurations for Purchase
**YouTube:** [How to Set Up Supplier Wise Calculation Configurations in Purchase?](https://www.youtube.com/watch?v=rcs7iG_675Q\&t=1s)
## How to Set Up Supplier Wise Calculation Configurations in Purchase?
In this tutorial, we will learn how to **set up calculation configurations for Purchase vouchers in Logic ERP and** understand how **cash discount can be applied either before tax or after tax** based on configuration.
***
### Creating Calculation Configuration for Purchase
To begin, create a purchase calculation configuration.
* Navigate to the **Setup Module** from the main menu
* Go to **Party-Wise Settings**
* Open **Setup Calculation Configuration for Purchase**
**Define Configuration**
* Enter a **Configuration Name**
* Click **Save**
* The saved configuration will now appear in the dropdown list
***
### Defining Calculation Mode
Once the configuration is saved:
* Select the required **Configuration Name** from the dropdown
* Click on **Calculation Mode**
Here, define how calculations should be applied for this configuration.
#### **Example 1: Cash Discount After Tax**
* Select the configuration (e.g., *Cash Discount After Tax*)
* Use the **Move Down** button to position **Cash Discount (CD)** *below*:
* Tax 1
* Tax 2
* Ensure the correct calculation sequence is maintained
***Important:*** If cash discount is calculated **after tax**, make sure the **default account for Cash Discount** is properly defined.
#### **Example 2: Cash Discount Before Tax**
* Select another configuration (e.g., *Cash Discount Before Tax*)
* Position **Cash Discount (CD)** *above*:
* Tax 1
* Tax 2
* This ensures that the discount is applied **before tax calculation**
* After defining the calculation order, click **Save**
***
### Allocating Parties to Purchase Calculation Configuration
Next, allocate the calculation configuration to suppliers.
* Go to the **Menu Bar**
* Open **Allocate Parties to Calculation Configuration**
* Select the **Party Account**
* Click **Refresh**
* Press the **Space Bar** and assign the required **Purchase Calculation Configuration**
* Save the changes
Repeat this process for each supplier as required.
***
### Verifying Calculation During Purchase Entry
Now let’s verify how the configuration works during actual purchase entries.
#### Scenario 1: Cash Discount Before Tax
* Create a **New Purchase Voucher**
* Select the supplier assigned with **Cash Discount Before Tax**
* Enter purchase details
* Click **View Totals**
***Result:*** The cash discount is applied **before tax calculation**.
#### Scenario 2: Cash Discount After Tax
* Click **New Voucher**
* Select the supplier assigned with **Cash Discount After Tax**
* Enter purchase details
* Click **View Totals**
***Result:*** The cash discount is applied **after tax calculation**.
***
### Final Confirmation
* Verify tax values and discount calculations
* Ensure the correct configuration is applied as per the supplier setup
***
### Conclusion
This completes the **Purchase Calculation Configuration setup in Logic ERP**, allowing you to control how cash discounts are calculated—either **before tax or after tax**—on a supplier-wise basis.
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