Mastering Purchase Taxes and Charges Template in Empress

Guides & Tutorials
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Introduction

Introduction

Welcome to the Empress Guide for the Purchase Taxes and Charges Template. This feature is a practical tool that allows you to apply Purchase Taxes and Charges to any item you purchase, simplifying the process of recording these necessary expenses.

This guide will guide you through the process of creating and using a Purchase Taxes and Charges Template in Empress. It will also explain how it can benefit your business operations, making your financial record-keeping more efficient and easier to manage.

Accessing the Purchase Taxes and Charges Template

To begin using the Purchase Taxes and Charges Template, follow the path:

Home > Buying > Settings > Purchase Taxes and Charges Template

Creating a Purchase Taxes and Charges Template

Empress simplifies the process of creating a new Purchase Taxes and Charges Template. Follow these steps:

  1. Click on ‘New’.
  2. Enter a title name for the Tax.
  3. Choose the type of tax. This determines what the tax will be calculated on and the tax rate. You have five options:
    • Actual: The tax is calculated on the actual amount of each item.
    • On Net Total: The tax is calculated on the grand total of all items.
    • On Previous Row Amount: This is for compounded charges, such as cess charges over the amount to which tax was already applied in the previous row.
    • On Previous Row Total: Similar to ‘On Previous Row Amount’, but applied to the total bill, not just one item.
  4. Select an account head with preset tax rates or create your own.
  5. If you want this template to be applied by default for new Purchase transactions, select ‘Default’.
  6. Save your changes.

Features of Purchase Taxes and Charges Template

Purchase Taxes and Charges Table

The Purchase Taxes and Charges Table includes several fields:

  • Consider Tax or Charge for: This can be set to ‘Total’ for the total of all items, ‘Valuation’ for each item, or ‘Valuation and Total’ to apply tax/charge to both.
  • Add or Deduct: This specifies whether you want the tax to be added to or deducted from the item.
  • Reference Row #: If the tax is based on “Previous Row Total”, you can select the row number to be used as a base for this calculation.
  • Is this Tax included in Basic Rate?: If checked, the tax amount will be considered as already included in the Print Rate / Print Amount.
  • Account Head: This is the Account ledger under which this tax will be booked.
  • Cost Center: If the tax/charge is an income or an expense, it needs to be booked against a Cost Center.
  • Description: This is a description of the tax that will be printed in invoices/quotes.
  • Rate: This is the tax rate.
  • Amount: This is the tax amount to be applied.

Conclusion

Understanding and effectively managing your Purchase Taxes and Charges is crucial for smooth financial operations in your business. The Empress Purchase Taxes and Charges Template provides an easy-to-use, efficient tool to aid in this process. Through this feature, you can streamline your tax recording and ensure accuracy in your financial reports.

For more information on using Empress and its features, please refer to the Empress User Manual or contact our support team.