Skip to main content
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

  1. Navigate to Accounts > Setup > Taxes and Charges Template > New.
  2. Enter:
    • Template Name (e.g., “Standard Purchase VAT + Freight”)
    • Type: Select On Net Total, On Previous Row Amount, or Actual
  3. 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)
  4. Repeat until complete, then click Save.

​
2.0 Assign Default Template to Suppliers or Items

  1. Supplier-level Default
    • Open a Supplier record under Buying > Supplier.
    • In Tax Settings, select the Default Taxes and Charges Template.
    • Click Save.
  2. Item-level Default
    • Open an Item under Stock > Item > Item List.
    • In the Purchase tab, choose the Default Taxes and Charges Template.
    • Click Save.

​
3.0 Apply on Purchase Transactions

  1. 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.
  2. 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.