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How to make an item tax template for sales in ERPNext.
In this tutorial, we’ll walk through how to set up an Item Tax Template in ERPNext for sales, using an example where the standard tax rate is 10% and the zero-rated tax rate is 0%.
Step 1: Navigate to the Item Tax Template
- In the ERPNext dashboard, use the search bar at the top or navigate manually by going to: Accounting > Taxes > Item Tax Template
- Once in the Item Tax Template list view, click the "New" button in the upper-right corner to create a new template.
Step 2: Create a New Item Tax Template
Example 1: Standard Rate Tax (10%)
- Set the Title of the template to something relevant like "Standard Sales Tax (10%)".
- In the Tax Table, specify the following:
- Tax Type: Choose the appropriate tax type (e.g., VAT, Sales Tax).
- Rate: Set the rate to 10%.
Example 2: Zero Rated Tax (0%)
- Again, create a new Item Tax Template by clicking on the New button.
- Set the Title to "Zero Rated sales Tax (0%)".
- In the Tax Table, specify the following:
- Tax Type: Choose the appropriate tax type (e.g., VAT, Zero Rated).
- Rate: Set the rate to 0%.
- Click Save once you're done.
Step 3: Apply Item Tax Template to Sales Items
Now that your templates are ready, you can apply them to individual sales items.
- Navigate to Stock > Item.
- Select the item you want to apply the tax template to or create a new item.
- In the item details, scroll down to the Tax Section and select the relevant Item Tax Template from the dropdown (either "Standard Sales Tax (10%)" or "Zero Rated Sales Tax (0%)").
- Save the item once you've made your changes.
Step 4: Test Your Item Tax Template on a Sales Invoice, Quotation or Sales Order
- To test the tax template, create a Sales Invoice or Sales Order by going to: Buying > Sales Order or Accounts > Sales Invoice.
- Add the item for which you’ve applied the tax template. You should now see the tax automatically populated based on the Item Tax Template.
Step 5: Review and Confirm
- Review your sales invoice or sales order to ensure the tax is calculated correctly (either at 10% or 0%, depending on the selected template).
- Once everything looks correct, submit the document.
You have successfully created and applied an Item Tax Template in ERPNext. By following these steps, you can manage item-level taxes for your sales efficiently, ensuring accurate tax compliance based on the tax rates you've set (Standard at 10% and Zero Rated at 0%).
