In Australia a Goods and Services Tax (GST) applies to most sales and purchases. This GST is levied at a flat 10% on goods and services. There are a couple of other taxes but for most small business the GST is the main one.
I struggled setting up the Sales Taxes and Charges Master so I thought I would share the results of my struggles with others, and hopefully save them some of the hours I have invested in this.
Depending on how you invoice goods and the needs of your customers you may need to show item prices with GST included, or you may need to show item prices with GST excluded. The GST on the invoice will be the same in both cases the only difference is whether the individual item prices show the GST or not.
So because of this we need to set up two Sales Taxes to apply to Taxable goods that you may sell and one Sales Tax to apply to TAX Exempt goods that you sell.
This will give us two Sales Taxes
GST for Items Taxable at the GST rate of 10% showing the Item price Exclusive of tax
GST-I for Items Taxable at the GST rate of 10% showing the Item price Inclusive of tax
But before we do this we need to set up the accounts /ledgers in the chart of accounts that the taxes will be shown in. I prefer an account for Taxes collected (from sales) and a separate account for Taxes Paid (on purchases).
>>ACCOUNTS>>CHART OF ACCOUNTS>>ACCOUNTS>>SOURCEOF FUNDS>>CURRENT LIABILITIES>>DUTIES AND TAXES
Add account. GST – Collected
Parent Account Duties and Taxes
Account Type TAX
Rate 10.00
Then to set up the Sales Taxes and Charges Master - goto
>>ACCOUNTS>>SALES TAXES AND CHARGES MASTER>>
The table below indicates the settings in the appropriate fields
|
Sales Tax |
GST |
GST-I |
|
|
Type |
On Net Total |
On Net Total |
|
|
Cost Center |
Blank |
Blank |
|
|
Rate |
10.00 |
10.00 |
|
|
Total |
0.00 |
0.00 |
|
|
Is included in Basic Rate |
Not Checked |
Checked |
|
|
Account Head |
GST collected |
GST Collected |
|
|
Description |
GST – Item prices shown Exclusive of Tax |
GST – Item prices shown Inclusive of Tax |
|
|
Amount |
0 |
0 |
|
|
Enter Row |
Blank |
Blank |
Depending on whether in the majority of your sales, you show items with or without GST included in the item price, select the appropriate Sales Taxes and Charges Item to be your default.
Unless you sell outside of Australia these rates will apply to all territories.
–
You received this message because you are subscribed to the Google Groups "ERPNext User's Forum" group.
To unsubscribe from this group and stop receiving emails from it, send an email to erpnext-user-forum+un...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.