Wrong Item Tax calculation on Sales Invoice

[JoEz]

Hi there,

i’m getting confused on how tax are calculated. Let’s have an example:

Item 1 have tax 10% on net total:

Item 2: tax 22% on net total:

In order to have both taxes calculated it’s needed to add a Sales Taxes and Charges Template, on which both taxes are included.

Problem arise when Sales Invoice calculate tax, what happen is that all taxes included in the template are calculated for both item included in Sales Invoice:

Expected behavior, taxes should be calculated as per settings in Item master.

ERPNext: v8.x.x-beta (2e8e535) (develop)
Frappe Framework: v8.x.x-beta (cf3ba70) (develop)

Could you please double check?

Thx

[Amit_Saxena]

Hi,
If I have understood your issue correctly then you have two products - 1) Cernia and 2) Cappone which have two different taxes. Cernia is taxed at 10% and Cappone at 22%. Based on the item selected you want the tax to apply.

What I will suggest you

1. make a single tax account_head say IVA and put a convenient tax rate in the Sales Tax Master.

2. Under Item Tax sub heading in the item document for the respective items, put IVA as Tax and Tax rate as 10% for Cernia and 22% for Cappone.

3. When making the sales invoice, select IVA as tax in Sales Taxes.

Although it will take the default value that you have put in the Sales Tax Master, if you have item tax defined in item having same account_head, then it will over ride the tax.

You can see the tax breakup under the tax breakup section under the taxes in the Invoice.

-Amit

[Chude_Osiegbu]

I haven’t found a simple way to handle the following situation

Invoice 1
Item A tax = 5%
Item B tax = 0%

Invoice 2
Item A tax = 10%
Item B tax = 10%

Do I have to continuously update the tax rate on item masters each time the tax rate in my invoice isn’t the default specified on the item master?

Can’t we have a scenario where, in the invoice, we explicitly state per line item what tax we want to apply?

[anandhuded2]

@JoEz

Item level tax calculation in erpnext is inbuilt.

You dont need to put the rate. You are required to set the rate to 0(Zero) in taxes and charges template for each tax.

In your case IVA 22% rate and amount should be 0(Zero) in tax template.

[JoEz]

It works, thx!