In many cases, you may want to have your sales price be inclusive of tax so that you can sell your product at a flat rate. For example, if you have a 5% tax and sell your product for $100, then you want that 5% to be included within that $100 as oppose to have the total price to be $105.
This can be accomplish by using the Gross Price functionality.
Set up and How To
Before we get start please ensure you have already done the following:
- Set up a Sales Tax Code: Administration->Setup->Financials->Tax->Sales Tax Codes Please see the following link for details on creating new Tax Codes: http://support.orchestrated.com/hc/en-us/articles/206413488-Tax-codes-add-new-or-adjust-existing
- Assign your Business Partner to a Price List: Business Partners->Business Partner Master Data->Payment Terms Tab
- Set your Business Partner to be Tax Liable:Business Partners->Business Partner Master Data->Accounting Terms Tab->Tax Tab
Once you have completed the prerequisites, you can continue onto the new steps:
- You'll need to update/create the price list that you have/will assigned to that Business Partner. To do, you can use the Price List Updater: Price List Update Utility
- Once you're finished with the updates, bring up that Price List double by going to Inventory->Price Lists->Price Lists, then double clicking on the first column with your price list
- Ensure that your prices for the items were updated correctly, then mark the check box at the top labeled Gross Price
- Bring up an invoice for the Business Partner and add the items like you normally would for a regular invoice
- Use Form Settings (Quick Start: Form Settings) to show Gross Price and Tax Amount
You'll now see that the Gross Price is the price you have listed in the Price List. The subtotal and tax amount have been automatically calculated based on the tax rate so that both totals reach your gross price and that is what the grand total for that invoice will be.