Issue with Taxes getting Posted to Customer Account in case o Free of Charg

[Former Member]

Hi All,

We have a requirement in our project where we need to pay tax to government on giving free of charge items to customers in a Sales order along with normal items.

But the tax should be not be charged to customer but to be born by us ( Selling company).( Since itu2019s a free of charge , so customer should not pay the tax)

The Legal rule is that tax should be calculated on Cost of Goods .

We have done the necessary configuration to calculate this tax but when the account posting happen this tax is getting charged to customer account .

We want to change the configuration so that this should not be charged to customer but to be paid by us,

For example .

Product Selling Price = 1000 GBP

Free of charge , so 100 % discount = -1000 GBP

Net value of item = 0 GBP

Cost of Good = 100 GBP

Tax rate = 15 %

Tax = 15 GBP

This 15 GBP should not be charged to customer account but to be paid by Selling company.

If anyone has faced a similar scenario and can give some pointers, please suggest.

Regards,

Divyanshu

[Former Member · Accepted solution]

Dear friend,

Maintain R100 condition type ie 100% discount in the last step of your pricing procedure, so when ever you sell item with TANN item category the value will become ZERO. Try this and let use know.

Regards,

Sudhir