How to Add Base Amount + Tax Amount for Surcharge in Tax Definition

How to Add Base Amount + Tax Amount for Surcharge in Tax Definition

How to Add Base Amount + Tax Amount for Surcharge in Tax Definition
Version: 1.0.29.1
Prepared by: Issac
Date: 24/05/2025


Table of Contents

  • Introduction

  • System Requirements

  • Logging In

  • Main Features and Functions
    4.1 Configuring Base Tax (Tax ID 1)
    4.2 Adding Surcharge on Base + Tax Amount
    4.3 Calculation Example

  • Troubleshooting Common Issues

  • FAQs

  • Support


1. Introduction

This guide explains how to configure surcharge taxes calculated on the base amount plus an existing tax amount (e.g., Tax ID 1) in the Tax Definition module. It is useful in scenarios where compounded tax is required, such as when surcharge (Tax 2) must be calculated on the base charge amount plus a previously applied tax (Tax 1).


2. System Requirements

  • Browser: Chrome 90+ or Firefox 85+

  • User Role: Admin or Tax Configurator Access


3. Logging In

  1. Navigate to the ERP System login page.

  2. Enter your username and password.

  3. From the dashboard, go to Tax Definition.


4. Main Features and Functions

4.1 Configuring Base Tax (Tax ID 1)

  • Add a new tax definition or select an existing one.

  • Set Tax ID 1 as a standard tax (e.g., VAT18%) applied to the base charge amount.

  • Save the configuration before adding surcharge.

4.2 Adding Surcharge on Base + Tax Amount

  • Add a new tax entry for the surcharge (Tax ID 2).

  • In the Percentage On tab, locate the field Percentage On.

  • From the dropdown list, select Base + Tax Amount.

  • This will ensure that Tax ID 2 is calculated on the sum of the base amount and Tax ID 1.

  • Enter the percentage rate for the surcharge (e.g., 18%).

  • Save the configuration.

4.3 Calculation Example

ComponentValue
Charge Amount₹1,000
Tax 1 (18%)₹180
Tax 2 (18% on ₹1,000 + ₹180)₹212.40
Total Amount₹1,392.40

5. Troubleshooting Common Issues

IssueSolution
Surcharge amount is not as expectedConfirm that "Base + Tax Amount" is selected in the Percentage On field for Tax 2.




6. FAQs

Can I apply more than one surcharge on base + tax?
Yes, additional taxes can be configured similarly by referencing other tax IDs.

What happens if I select only ‘Base’ in the dropdown?
The surcharge will be calculated only on the original charge amount, excluding prior tax.

Is this configuration job-specific?
No, it applies system-wide wherever the tax definition is used.


7. Support

For further assistance, contact the IT Help Desk at helpdesk@aggrandizeventure.zohodesk.in

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