Include or Exclude Tax on List Price
Specify whether to include or exclude tax on the list price.
-
Go to the Setup and Maintenance work area, then go to the task.
-
Offering: Financials
-
Functional Area: Transaction Tax
-
Task: Manage Tax Regimes
-
-
On the Manage Tax Regimes page, open your tax regime for editing.
-
On the Edit Tax Regime page, set the inclusion method.
Tax Inclusion Method
Description
Standard Inclusive Handling
Include tax as part of the list price.
Standard Noninclusive Handling
Don't include tax as part of the list price. Instead, add it to the list price.
For example, assume the list price for the item is 100. Here's how tax affects the sales order.
Tax
Price in Sales Order
Inclusive tax of 10%.
Total Net Price, $90
Total Tax, $10
Pay Now, $100
Exclusive tax of 10%.
Total Net Price, $100
Total Tax, $10
Pay Now, $110