Overview of Tax on MRP

Process to enable “Tax on MRP” Feature in MargBooks

Process to Configure the item for Tax Calculation on MRP

Process to Create a Sale Bill for Items with Tax on MRP

Overview of Tax on MRP

The Tax on MRP (Inc.) feature in MargBooks allows User to calculate tax on an item's MRP instead of its sale rate. Once enabled for an item, the tax amount is calculated based on the MRP and remains unchanged even when a discount is applied. For items using the normal tax-inclusive method, the tax is calculated on the sale rate, and applying a discount reduces the taxable value and tax amount accordingly.

This feature is useful for items where tax is calculated on the printed MRP, such as Tobacco Products.

Process to enable “Tax on MRP” Feature in MargBooks

• Go to Dashboard > Settings.

• The Dashboard Settings window will open. Click on the "Configure" option against Control Room.

• In the Control Room Settings window, search for "Calculation Type".
• Click on Configuration against Calculation Type.

• The Calculation Type window will open. In the Tax Type field, select Item Wise from the dropdown list.

• Next, Click on "Save" to update the settings.

Process to Configure the item for Tax Calculation on MRP

• Go to Dashboard > Master > Inventory Master > Item.

• Search for the required item using the search bar and click on the Pencil icon to modify it.
• For example, here we are selecting Tobacco.

• The Modify Item window will open. In the Calc. on Sale field, select Tax on MRP (Inc.).
• Next, Click on "Update" to save the Changes.

Process to Create a Sale Bill for Items with Tax on MRP

• Go to Dashboard > Sale > Bill.
• Click on the "+" icon to create a new sale bill.

• In the Sale Bill Creation window, select the required party and Press "Enter".
• In the Product field, Press "Enter" to open the Item List.

• Item List will open
• Select the Required Item from the list or search for it using the Search bar.

• Enter the Required Quantity.
• The tax is calculated on the MRP of ₹500 as shown in the figure below.

• Now, add another item in the same bill for which the tax calculation is set to the normal Tax-inclusive method.
• As shown in the figure, the tax for the second item is calculated on its Sale Rate, whereas the tax for the first item is calculated on its MRP.

Note 1: For items configured with Tax on MRP (Inc.), the tax amount remains unchanged even after applying a discount to the item.

Note 2: For items using the Normal Tax-inclusive method, applying a discount reduces the taxable value, and the tax amount is recalculated accordingly.

By following these steps, User can enable Tax on MRP (Inc.) and Create a sale bill in MargBooks.