Introduction
Welcome to this Empress guide, designed specifically for business users. In this guide, we will focus on the Sales and Purchase Taxes Master feature in Empress - specifically the ‘Type’ column. This feature is a vital tool for managing your business’s tax obligations accurately and efficiently.
The ‘Type’ column in your Sales and Purchase Taxes master allows you to choose the method for tax calculation that best suits your specific needs. Whether you’re dealing with a fixed tax amount, a percentage-based tax, a tax dependent on another tax, or even an item-specific tax, the ‘Type’ column has you covered.
A Closer Look at Tax Types
Let’s delve deeper into each ‘Type’ and how you can utilize them in your day-to-day business operations.
Actual
The ‘Actual’ type is your go-to when you have a known, fixed expense, such as a transport fee. Instead of calculating a percentage, simply input the exact amount directly into the system.
On Net Total
The ‘On Net Total’ type is ideal for when you have to apply a percentage-based tax to all items within an order. For instance, if your business needs to apply an 18% GST on all items in a sales order, this option would be appropriate.
On Previous Row Amount
The ‘On Previous Row Amount’ type is ideal for situations where one tax is dependent on the calculation of another. For example, if you have an Education Cess that’s calculated based on the amount of GST tax, this would be the correct choice.
On Previous Row Total
The ‘On Previous Row Total’ type uses a cumulative tax calculation method. It’s perfect for when you need to apply a tax on the Total Amount of another tax row. Just remember, if you select this type, you must also specify a Row No. whose Amount or Total should be considered for the calculation.
On Item Quantity
The ‘On Item Quantity’ type is perfect for applying fixed or item-specific taxes, such as when the tax amount is determined per unit of an item.
Conclusion
Understanding and effectively using these tax types can greatly enhance your efficiency in managing your taxes in Empress. By choosing the tax type that best aligns with your specific tax calculation needs, you can ensure accurate and efficient tax management, freeing up more time for you to focus on other aspects of running your successful business. For further assistance or resources, please consult our Empress user guide or reach out to our support team.