Setting Up Taxes
Taxes are compulsory contributions to the state/country revenue.
One of the primary motivators for compulsory use of accounting tools is the calculation of taxes. ERPNext allows you to make configurable tax templates that you can apply to your sales or purchase transactions.
1. Tax Accounts
For Tax Accounts that you want to use in the tax templates, go to:
Home > Accounting > Chart of Accounts
Select an account and click on edit. Select the 'Account Type' as 'Tax' for the account.
2. Sales Taxes and Charges Template
3. Purchase Taxes and Charges Template
4. Item Tax Template
5. Tax Category
Tax category helps in automatically applying sales/purchase tax templates in your transactions based on the customer/supplier chosen. Click here to know about this.