In the Sales Taxes and Purchase Taxes master, you’ll encounter a column labeled Type, each with its respective meaning and application:

Actual: This option allows you to directly input the expense amount. For instance, if there’s a shipping cost of Rs. 500, you would select this type.

On Net Total: If you intend to apply taxes or charges based on the net total, choose this option. For example, if there’s an 18% GST applied to all items in the Sales Order.

On Previous Row Amount: This type is useful when you need to calculate the tax amount based on another tax amount. For instance, Education Cess may be calculated based on the amount of GST tax.

On Previous Row Total: With this option, a cumulative tax is calculated in the Total column for each tax row. For the first row, the total tax is calculated as the Net Total plus the tax amount in the first row. Use this type if you want to apply a tax based on the Total Amount of another tax row.

When selecting Type as Previous Row Amount or Previous Row Total, you must specify a Row No. whose Amount or Total should be considered for the calculation.

On Item Quantity: This type is applicable for fixed or item-specific taxes.