Setting up tax calculation as percentage on net total

ERPNext User Forum
1

Hi all,

Having some issues setting up GST as a 10% tax on the net total for billing (sales). When I setup the tax as shown in my screenshot below (edit: can’t upload images as I’m a new user*) it looks OK. However when i create a sales order it calculates as 0.1% not 10% as I have specified. Even if I set the value to 1000 in the tax master it still only adds 20c on a $200 order - it should be 200 x 10% = $20.

*OK so my taxes setup is:

Name: 10% GST
Description: GST 10%
Type: On Net Total
Account Head: GST-CP
Cost Centre: Main-CP
Rate: 10.00

Taxes and Charges section on the sales order shows Net Total 200 AUD, Amount of GST 10% 0.20 AUD - total 200.20.

Can someone tell me what I’m doing wrong here please.

Thanks
Liam.

2

Hi,
In “Sales Taxes and charges master” list , Include
Type = On Net Total
Description = GST 10%
Rate =10
Amount

Save above form

Go to “Sales Order”
If i have select one of the item, Qty of that item - 10 ,Rate is- 20
Then (Item amount) become = 200 i.e (10*20) …This is Net Total

Now apply taxes on “Net Total” i.e 10 (Rate=10)
(TaxAmount) become = 20 i.e ((200*10)/100)
Total and Grand Total become = 220.00 i.e ( Item amount + Tax amount)

Shraddha Ranjane
New Indictrans Technologies Pvt. Ltd.

3

Great, thanks shraddha, that appears to have worked. I had it set like that previously but must have done something in the pricing rules which made it not work.

Cheers
Liam.