One of the difficult accounting management tasks that demands accuracy in execution is tax calculation. Your business is in jeopardy even with a tiny calculation error. Tax computation has become much easier since the Odoo18 Accounting module was introduced. You may access the Taxes platform, where you can handle sales and purchase taxes, via the Configuration menu of the module.
The list of taxes that are readily available can be sorted according to Sales, Purchases, Services, Goods, Active, and Inactive. Depending on the company, tax type, and tax scope, you can categorize them.
The Filters and Group By choices are fully customizable for the user. To set up a new tax, click the New button now.
In the Tax Name area, give the new tax a name. You can choose between the sales and purchases tax types. It chooses the areas where the tax can be chosen. The tax cannot be used individually when the value is "none," but it may be applied to a group. By choosing the appropriate choice in the Tax Scope field, you can limit the application of taxes to a certain class of goods. To conceal the tax without deleting it, set the tax's Active property to false.
You can choose from the Group of Taxes, Fixed, Percentage, Percentage Tax Included, and Custom Formula choices in the Tax Computation field to specify how taxes will be computed.
In the instance of the Group of Taxes, the tax is actually a collection of sub-taxes, and the sub-taxes are what are used to calculate the overall tax. Using the Add a Line button, you may sequentially add the sub-taxes under the Definition tab.
You may get information about the Company and Country under the Advanced Options tab.
By choosing Tax Computation as Fixed, the tax amount is fixed regardless of the cost. By choosing the Percentage of Price as the tax computation method, the tax amount can be set as a specific percentage of the actual price. In the Percentage of Price Tax Included approach, the tax amount will be calculated as a fraction of the actual price. With the aid of the Python Code option, the tax can also be calculated using Python code. All of these techniques have the same setting choices.
Using the Add a Line button, you may choose the base on which the factor will be applied, the account on which to post the tax amount, and the tax grids to define the distribution for invoices and refunds individually under the Definition tab.
You can add them to invoices by mentioning the Label on Invoice option under the Advanced Options tab. From the available options, choose the most appropriate Tax Group.
The amount calculated by this tax will be assigned to the same analytic account as the invoice line when the Include in Analytic Cost option is enabled. Details about the Company and the Country (to which this tax applies) can be seen in the corresponding fields. If the price you use on the item and invoices contain this tax, turn on the Included in Price field. Turning on the Affect Base of Subsequent Taxes function, it will have an impact on taxes that come after this one in the sequence.
