Prices Including Tax

IFS Applications is built to handle B2B collaborations. In most countries taxes are levied on the price charged to the end consumer. This means that prices before tax are used in trade between companies. However, some countries do not follow this concept but trade B2B with prices including tax.

IFS Applications supports both price and price including tax. The Use Price Incl Tax check box specifies the basis of the tax calculation and is available in the company, site, customer, supplier, sales part etc. This check box provides the possibility to enter either the price or the price including tax. Based on the setting on the Use Price Incl Tax check box, you can enter a value on either the Price field or the Price Including Tax field. Both the price and the price including tax are saved in the database.

The setting of the Use Price Incl Tax check box in the company is defaulted to the site, supplier and customer. The setting of the check box in the supplier and customer is defaulted to the purchase order, supplier agreement, customer order, sales quotation, customer agreement, return material authorization and shipment. The setting of the check box in the site is defaulted to the sales part, non-inventory sales part, package part, sales charge types, supplier for purchase part and purchase charge types.

If the Use Price Incl Tax check box is selected: Only the Price Including Tax field is editable and the price is non editable. The basis for tax calculation is the price including tax. The price is calculated based on the entered price including tax value and the tax code. The Use Price Incl Tax check box can only be used when the company tax regime is VAT.

If the Use Price Incl Tax check box is cleared: Only the Price field is editable and the price including tax is non editable. The basis for tax calculation is the price. The price including tax is calculated based on the entered price and the tax code.

General “Price incl of Tax” formula

The general formula for the Price Including Tax is Price * ((sum tax % / 100) +1). This will affect the customer order and sales quotation lines when you know the customer.

Example:

Currency: SEK
General Consumption VAT: 25%
Specific Customer added Surcharge VAT: 2%
Price excl. Tax (VAT): 100 SEK
Price incl. Tax (VAT): 127 SEK = 100 * (((25 / 100) + (2 / 100)) +1)

General “Price” formula

The general formula for the Price is Price Including Tax / ((sum tax % / 100) +1). This will affect the customer order and sales quotation lines when you know the customer.

Example:

Currency: SEK
General Consumption VAT: 25%
Specific Customer added Surcharge VAT: 2%
Price Including Tax (VAT): 127 SEK
Price: 100 SEK = 127 / (((25 / 100) + (2 / 100)) +1)

Dependencies - General

Dependencies - Customer Order

Sales Part

Price Lists

Customer

Customer Order Line

Dependencies - Procurement

Site

Supplier

Purchase Part

Supplier for Purchase Part

Purchase Order Line

Supplier Agreement/Part Step Pricing