Set Inclusive Tax Calculation for Sales Orders
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How to Set Inclusive Tax Calculation for Sales Orders?
In this tutorial, we will learn how to set up inclusive tax calculation in the Sales Order module of Logic ERP. Let’s get started.
Applying Inclusive Tax in Sales Order
Open the Sales Order module.
Enter the Customer Name.
Select the Inclusive Tax Region.
Proceed with transacting the item.
Now go to the Other Details section.
Here, you can observe that inclusive tax calculation is applied, meaning the gross amount already includes tax.
The system internally calculates and adjusts the tax components while ensuring that the net amount remains equal to the gross amount.
Configuring Inclusive Tax Calculation
To configure inclusive tax calculation, follow these steps:
Tax 2 Configuration (Inclusive Tax)
Open Configuration.
Navigate to Calculation Mode for Tax 2.
Set Calculation Position for Percentage Fields to Cumulative.
Define the Calculation Method as Minus (–).
Set Calculation Type to Item Wise Inclusive.
This configuration enables inclusive tax calculation at the item level.
You may also configure:
Round Off
Description
as per your business requirements.
Tax 1 Configuration
Set Calculation Position for Percentage Fields to Position Number.
Enter the Position Number as 5.
This position number is determined by counting all fields upward up to Tax 2. Since the total number of fields up to Tax 2 is 5, the position number is set accordingly.
Set Calculation Method to Plus (+).
Set Calculation Type to Default.
Configure Round Off and Description if required.
Tax 3 Configuration
Maintain exactly the same settings as Tax 1 to ensure consistency in calculation.
Conclusion
This is how you can successfully configure inclusive tax calculation in the Sales Order module of Logic ERP. With this setup:
Tax is included within the item rate
The system accurately splits tax components internally
The gross and net amounts remain aligned
This ensures accurate tax handling and compliant billing for inclusive tax regions.
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