Tax calculation

This functionality is specific for India.

LN calculates tax on the following types of transactions, among others:

  • Sales invoices
  • Purchase invoices
  • Contract invoices in Project
  • Advance payments/ Advance Receipts
  • Journal vouchers

Whether LN calculates tax on advance payments depends on the Calculate Tax on Advance Payments/Receipts parameter in the CMG Parameters (tfcmg0100s000) session.

Level of tax calculation

Usually, tax must be calculated for the individual transaction lines.

For manually entered purchase invoices, you can select the Level of Tax Calculation in the following sessions:

  • ACP Parameters (tfacp0100s000), the default value
  • Purchase Invoices (tfacp1110s000), for each transaction.

The level of tax calculation can be:

  • Invoice Header
  • Transaction Line

For purchase invoices to which only one tax code applies, you can calculate the tax at invoice header level. If several tax codes and/or tax types apply, you must calculate the tax by transaction line.

As a rule, you create manual sales invoices in Invoicing and LN calculates the tax for each transaction line. However, for sales invoices that you create manually in the Accounts Receivable module, you can select the Level of Tax Calculation or use the default value you selected in the ACR Parameters (tfacr0100s000) session.

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