Prerequisites\
- Tax and charge ledger accounts exist under
Accounts > Chart of Accounts - Suppliers have appropriate tax settings if jurisdictional rules apply
What it does
- Defines tax and charge templates for use on Purchase Orders, Receipts, and Invoices
- Automatically calculates line- and document-level taxes, freight, insurance, and other costs
- Posts tax amounts to the correct payable accounts
Why it matters
- Ensures you capture full landed cost of goods
- Automates tax liability and expense postings
- Simplifies compliance and audit trails
Steps to Configure and Apply Purchase Taxes & Charges
1.0 Create Tax and Charge Templates
- Navigate to
Accounts > Setup > Taxes and Charges Template > New. - Enter:
- Template Name (e.g., “Standard Purchase VAT + Freight”)
- Type: Select On Net Total, On Previous Row Amount, or Actual
- In the Tax and Charges table, click Add Row for each component:
- Charge Type: e.g., GST @ 7.5%, Freight, Insurance
- Tax Rate or Amount
- Account Head: Ledger account to post the charge
- Description (optional)
- Repeat until complete, then click Save.
2.0 Assign Default Template to Suppliers or Items
- Supplier-level Default
- Open a Supplier record under
Buying > Supplier. - In Tax Settings, select the Default Taxes and Charges Template.
- Click Save.
- Open a Supplier record under
- Item-level Default
- Open an Item under
Stock > Item > Item List. - In the Purchase tab, choose the Default Taxes and Charges Template.
- Click Save.
- Open an Item under
3.0 Apply on Purchase Transactions
- On Purchase Order / Receipt
- After linking items, expand the Taxes and Charges section.
- Click Get Template and select your template.
- Review calculated amounts per line and totals.
- On Purchase Invoice
- Link to PO or Receipt, then open Taxes and Charges.
- Use Get from PO, Get from Receipt, or Get from Supplier/Item.
- Adjust rates or amounts if needed before Save and Submit.