Tax Group Problem

This is related to Sales Type. If I change the parameter Tax included to No then it works. Taxes are calculated correctly and the account 4450 is not used.
Payment is Cash and currency is local currency USD and customer is Ghostbusters.

What is the file where the tax calculations are?

BR,

Jarmo

Hello again,
This problem has now been fixed. CVS Main trunk updated. Affected file: /taxes/tax_calc.inc.

You can download the file here:

/Joe

Can anyone explain how to use the system in my case;
I have certain items with 4% tax and certain Items with 12.5% tax...
I have set the tax groups and taxt item types correctly with the exact tax rates.
I checked in the setup and made sure the pricing does not include tax. And the tax has to be calculated seperately based on the type selected in the item configuration.
but when I try to do a direct invoice I cannot see taxes calculated. Its blank. though the item I selected has a 12.5% tax configured to it, it does not show any tax in the direct invoice!!

I too am confused about how to set up the tax functionality.  We have some customers that are tax-exempt, and some that arent't.  The ones that are taxed can be taxed at different rates. 

So I:
set up 3 Tax Types - one for each rate
set up 4 Tax Groups - one exempt and once for each tax type
left the default Item Tax Type of Regular (non-exempt)
left the default Sales Types that include a Retail (tax included) and Tax Exempt
specified Retail for the taxed customer's Sales Type
specified the proper Tax Group for the customer branch

When a delivery note is created, it never shows tax in the total, and in the debtor_trans table, the ov_gst field is 0.  If I manually populate that field, the tax shows up.

What am I missing?

(thanks in advance)

Itronics - thanks for your help.  It's seems that what you are explaining is exactly what I've done.

I am in the US, where each state has it's own tax rate.  So I set up 3 Tax Groups, call them Group A, Group B, and Group C (one for each state our customers are in), and one for Tax Exempt customers.  Each of the 3 taxed groups only has one rate....the rate that applies to their state.  So Group A is set up for Tax A at 6%, Group B is set up for Tax B at 6.5%, and Group C is set up for Tax C at 7%.

The customer in question is not tax exempt, therefore I selected the appropriate tax group (Group C) in the customer branches setup.  Their state is at a 7% tax rate.

This is a "Direct Delivery" entry, but it seems to work the same if I try a Sales Order entry.  The order has only one item at $263, and a quantity of 4.  So the line item total shows $1,052.00, the sub-total shows $1,052.00, Shipping is $0.  All good so far.

Then the tax line shows the tax group and $68.882 for the tax.....which is NOT 1052 x .07.  It should be $73.64.  The Amount Total line still shows $1,052....which I understand (from reading the many posts on this topic) could be showing the total "value" of the goods in the order....which would exclude tax.

The real problem is that once delivered and invoiced, the invoice shows $1,052 on the TOTAL INVOICE line...so nowhere does the customer know the actual total to pay.....  which should be 1052 + 73.64 = $1,125.54

Thanks again for your help....believe me, I have tried figuring this out myself, but tax in this application is a fairly complex chain of included files and called methods on objects that are bounced around quite a bit in the code.