How to configure Taxes correctly ?

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Maaz Contractor

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Aug 20, 2014, 3:08:43 AM8/20/14
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We have some unique Tax requirements.

Some of our products have a different tax structure. I have applied a Tax Rate in the Item Master. 

However, when I create the Quotation, I do not see that tax being applied on a per item basis.
There is an option to add Taxes in the Quotation, but that applies on the whole to all items. How do I specify a different Tax to be applied to different items in the quotation or sales order ?

Also, We have a Tax structure of the form:
12.5% VAT and 2.5% surcharge on the earlier 12.5% VAT tax. How can this be modelled in ErpNext ?

Thanks for taking a look.

~Maaz

Umair Sayyed

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Aug 20, 2014, 3:40:35 AM8/20/14
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Hello Maaz,

In the Sales Order - tax and other charges table, you should set tax rate as "zero". System gives priority to tax rate mentioned in the item master over tax rate mentioned in the transaction.

With this, you will have tax rate as mentioned in the item master applied for that item. For rest of the items, tax rate applied will be "zero", means that tax will not be applied on other items.


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Thanks and Regards,
Umair Sayyed
www.erpnext.com

Maaz

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Aug 20, 2014, 4:54:00 AM8/20/14
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Thanks Umair for your response.

Also how will I setup a surcharge on the tax ?
We have a 12.5% VAT tax and a 2.5% surcharge on the taxed amount.

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Umair Sayyed

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Aug 20, 2014, 5:14:04 AM8/20/14
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Maaz,

Add new row in tax table for surcharge. This row will have following values.
  1. Type = On Previous Row Amount
  2. Reference Row # = Row no. of Tax on whose tax amount this tax will be applied. (Row no. of VAT tax in your case).
  3. Account = Ledger for surcharge
  4. Rate = Tax Rate

Check following link for more help on managing taxes.

https://erpnext.com/user-guide/setting-up/setting-up-taxes

Hope this helps.




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Maaz

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Aug 20, 2014, 6:44:16 AM8/20/14
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