Sales TAXES and CHARGES

Sales Taxes and Charges are the additional costs that needs to be added in a Sales Order and Sales Invoice. These can be Value Added Taxes, Freight Cost and other costs incurred that should be included in a Sales Order other than the item prices.

In ERPNext you can create a template of these charges so that when you create a Sales Order, you just have to select each cost in a dropdown.

1. Go to the Sales Taxes and Charges Template list, click on New.

2. Enter a title name for the Tax.

3. Select a Tax Category.

4. Select the Sales Taxes and Charges Type:

- On the Actual, you can directly enter the total amount.

- On Net Total field: you can enter the percentage to be computed based on the net total of all the items.

- On Previous Row Amount: This is for compounding the charges. For example, excess charges over the amount to which tax was already applied in the previous row.

- On Previous Row Total: Same as On Previous Row Amount but charges are applied on the total bill and not just the amount of an item.

- On Item Quantity: Tax will be calculated as Tax Rate * Item Quantity. As an example, if Tax Rate is 2% and number of Items is 1, then Tax Rate will be 4, if number of Items are 5, Tax Rate will be 10, and so on.

5. Click Save.