Sales Taxes and Charges Template
Sales Taxes and Charges may be applied to any item you sell.
The templates generated from this form are applicable in Sales Orders and Sales Invoices.
For Tax Accounts intended for use in tax templates, the Account Type field must be designated as ‘Tax’ for the respective account. BizCentric organizes taxes through templates. Additionally, other types of charges applicable to invoices, such as shipping or insurance, can also be configured as taxes.
To know about setting up taxes visit this page.
To access Sales Taxes and Charges Template, go to:
Home > Selling > Settings > Sales Taxes and Charges Template
To know about setting up taxes visit this page.
1. How to add Sales Taxes/Charges via a template
Before creating a new template, it’s essential to note that templates for many commonly used taxes are already available.
To create a new template:
- Navigate to the Sales Taxes and Charges Template list and click on New.
- Provide a title for the tax.
- Choose the type of tax calculation and specify the tax rate. There are five options for tax calculation type:
- Actual: Allows direct entry of the expense amount.
- On Net Total: Calculated on the net total of all items.
- On Previous Row Amount: For compounding charges, such as cess charges over previously taxed amounts.
- On Previous Row Total: Similar to the above but applied on the total bill amount.
- On Item Quantity: Calculated as Tax Rate * Item Quantity.
- Select an account head with preset tax rates or create a new one.
- Optionally, designate this template as the default for new Sales transactions.
- Save the template.
‘Is Inter State’ (for India): When a customer is selected in a Sales Invoice or Delivery Note, if the GST codes of the place of supply and customer shipping address don’t match, the template with ‘Is Inter State’ checked will be applied as the taxes template. Conversely, if the place of supply and shipping address match, the default taxes template will be applied. This also applies to Purchase Invoice; upon selection of the Supplier, the templates are set based on the addresses. For example, IGST.
2. Features
2.1 Sales Taxes and Charges table
- Consider Tax or Charge for:
- Total: Applies to the total of all items.
- Valuation: Applies to each item individually.
- Valuation and total: Applies tax/charge to both.
- Reference Row #: If the tax is based on “Previous Row Total,” you can select the row number that will serve as the base for this calculation (default is the previous row).
- Is this Tax included in Basic Rate: When checked, the tax amount is considered already included in the Print Rate / Print Amount in the Item table of a transaction. This is useful for offering tax-inclusive prices to customers. To accommodate tax-inclusive rates, the system deducts the tax amount from the Net Amount and then calculates the tax.
- Account Head: The ledger account under which this tax will be recorded. If you select VAT or any other preset heads, the rate will be automatically filled.
- Cost Center: If the tax/charge is treated as income (e.g., shipping) or expense, it needs to be assigned to a Cost Center.
- Description: A brief description of the tax/charge (printed on invoices/quotes).
- Rate: The tax rate, e.g., 14 = 14% tax.
- Amount: The tax amount to be applied, e.g., 100.00 = ₹100 tax.The tax rates defined in the template serve as the standard tax rate for all items. If certain items require different rates, you can override the standard tax rate by setting an Item Tax Template for the individual item or item group.