Prices Including Tax

IFS Cloud 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 Cloud supports both price and price including tax. The Use Price Incl Tax setting specifies the basis of the tax calculation and is available in the company, site, customer, supplier, sales part etc. This setting provides the possibility to enter either the price or the price including tax. Based on the setting on Use Price Incl Tax, 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 Use Price Incl Tax in the company is defaulted to the site, supplier and customer. The setting 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 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 option is enabled: 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.

If the Use Price Incl Tax option is disabled: 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 Including 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
Tax % : 25% and 5%
Price excl. Tax : 100 SEK
Price incl. Tax : 130 SEK = 100 * (( 25 / 100+5 / 100) +1)

General “Price” formula

The general formula for the Price is Price Including Tax - Tax. This will affect the customer order and sales quotation lines when you know the customer.

Example:

Currency: SEK
Tax: 25% and 5%
Price Including Tax : 260 SEK
First calculate the Tax
Total Tax Amount (un-rounded) = Price Incl Tax / (1+Total Tax%) * (Total Tax%)
Total Tax Amount (un-rounded) = 260 / ((1+(25/100+5/100)) * (25/100 + 5/100) = 60 SEK

Tax amount for 25% (rounded) = 60 / 30*25 = 50 SEK
Tax amount for 5% (rounded)   = 60 / 30*5  = 10SEK

Total Tax Amount (rounded) = 50+10 = 60 SEK


Price = Price Incl Tax - Tax = 260 -60
Price = 260 SEK
 

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