Topic: Tax Association in Sales & Purchase.

Dear sir,

In our organization, the purchase modules require 2 types of taxes charged.

1)- 4% VAT.
2)- 1% Additional VAT.

So How Can we integrate these taxes in purchase module, so that it wil displayed after line total ???


In Sales module i have to charged 12.6% VAT for sales items. So how can we integrate it with FA system.

At All i does not able to understand how tax  in incorporated with FA.

Re: Tax Association in Sales & Purchase.

Please look for information regarding this in the  .


3 (edited by sumitg.mukti 11/08/2010 10:25:26 am)

Re: Tax Association in Sales & Purchase.

Dear Sir,

As given in FA Wikki, i have assigned the values as per my need, but it's not working fine, it gives some error.
i.e. when creating sales order it is giving 12% VAT that is right but when creating purchase order it also gives 12.6 % of VAT, which is wrong. it will be 4% & 1% of VAT.

I have given following setting for my needs for tax association with sales & purchase

Tax types are
Description    Default Rate (%)  Sales GL Account           Purchasing GL Account   
VAT                4.0                      Purchases of materials    Purchases of materials       
Additional VAT    1.0                      Purchase price Variance  Purchase price Variance       
VAT                    12.6                      Sales                             Sales       

Tax groups are -
Description    Shipping Tax   
VAT                  No       
Tax Exempt    No   

Item tax are -
Name    Tax exempt   
Regular    No       
Preferenced Goods    No   

In regular Tax, i have selected VAT (12.6%) & in preferrenced tax i have give for VAT(4%) & Additional VAT (1%). So, sir please solve this problem .... waiting for ur reply ....

Sumit Singh

Re: Tax Association in Sales & Purchase.

First of all, when creating Tax Types you should set correct GL Accounts for Sales and Purchase. You have set the purchase and sales accounts. This is not right. You should set Sales Tax Gl account somewhere in the liability section and a purchase Tax account either the same or one in the assets section. You can use the same account for both Sales Tax and Purchase Tax.
Secondly you should create the Tax Groups. One that includes both the 4% and 1% and one which includes only the 12.6%.
In the Item Tax types you create some types with or without the tax types.

I wonder which release you are running. We have made some improvements in 2.3 RC3, regarding supplier invoices.


Re: Tax Association in Sales & Purchase.

Thanxs, for speedy reply ....

I am going to configure tax system as in your reply.