Sales Tax and Purchase tax
Tax is levied on all types of purchases and sales. On Purchases input tax is levied. On Sales output tax is levied. Difference between output tax and input tax is payable to the government. Every country has its own tax policy. The government makes necessary changes to the procedure from time to time. Input tax is charged by the vendor. Output tax is charged to the customer.
We need to configure tax procedure as per the organisational requirements.
Configuration
1. Define Tax Procedure
2. Assign Country to Calculation Procedure
3. Define Tax Codes for Sales and Purchases
4. Assign Tax Codes for Non Taxable Transactions
5. Creation of G/L Masters
6. Assignment of Accounts for Automatic Postings
End User Area
1. Sales Invoice Posting
Tax is levied on all types of purchases and sales. On Purchases input tax is levied. On Sales output tax is levied. Difference between output tax and input tax is payable to the government. Every country has its own tax policy. The government makes necessary changes to the procedure from time to time. Input tax is charged by the vendor. Output tax is charged to the customer.
We need to configure tax procedure as per the organisational requirements.
Configuration
1. Define Tax Procedure
2. Assign Country to Calculation Procedure
3. Define Tax Codes for Sales and Purchases
4. Assign Tax Codes for Non Taxable Transactions
5. Creation of G/L Masters
6. Assignment of Accounts for Automatic Postings
End User Area
1. Sales Invoice Posting