Item Tax Template Issue: Taxes from Multiple Templates Applied to All Items in Sales/POS Invoice

[gdelacruz-nts]

Hi ERPNext Community,

I’m experiencing an issue with Sales Invoice and POS Invoice tax calculation. When I add multiple items, each with a different Item Tax Template, ERPNext merges all taxes from all templates and applies them globally to every item. For example:

• Product A (Item Tax Template X)

• Product B (Item Tax Template Y)

Both products end up with taxes from X and Y applied, instead of each item only getting its own template’s taxes. This happens with any number of products/templates.

Expected:
Each item should only have taxes from its assigned Item Tax Template.

Actual:
All taxes from all templates are applied to all items.

Is there a way to fix this in ERPNext, or a recommended workaround? I’ve seen some discussions about this being a known limitation, but haven’t found a solution. Any help or guidance would be appreciated!

[asieftejani]

HI @gdelacruz-nts

Can you try to create a sales template with 0 and see what happens.
It has worked in these threads: -

Item Tax does not really work in ERPNext if you have more than 2 tax templates

I tried and for me it works (in purchase orders) i created 3 item tax templates a) 15% template b) 5% template c) Mixed template - charges both 5% + 15% = 20% (two input VAT accounts) For each item i linked the Tax item template in its tax settings I created a purchase invoice: - One item at 15% One item at 5% One item at mixed - 20% It gave me the correct calculations for tax and hit the correct accounts that I had configured Is your scenario still different or maybe its a bu…

[ahsantareen]

@gdelacruz-nts

The item tax template is prioritized in POS and incase of having different item taxes applied to different items or item groups, pos profile sales tax charges template field should be left blank. Then item tax template will work efficiently for each item within POS.

[gdelacruz-nts]

That’s the thing, it used to work like that before. But I think it broke after some update. It doesn’t work for me anymore.

[gdelacruz-nts]

Hi,

Thank you for your reply!

Unfortunately, this didn’t work for me. ERPNext keeps applying all Item Tax Templates to all present items. This is really weird since this bug completely defeats the purpose of having Item Tax Templates in the first place. Right now, I can only do correct invoices if all items have the same tax rate.