Odoo Price Inclusive For Group Taxes

Odoo Price Inclusive For Group Taxes - Manage taxes accurately in Odoo!!

Odoo's tax calculating algorithm in prices inclusive of taxes goes a little askew if the selected tax is divided into multiple components(like GST @18% has two components CGST @9% and SGST @9%).

The default Odoo algorithm, in this case, calculates the taxes individually for each component from the same tax inclusive sale price (9% two times from the same Base Amount) and adds them together later leading to a miscalculation in taxes.

The right formulae for price inclusive tax is as follows:

Formula = base_amount - (base_amount / (1 + rate / 100))

Calculating the default formulae with Base amount as 100 and rate(GroupTax) as 18% (9% + 9%) then expected tax would be 15.2542373.

However, the Formulae used by the Flow of Odoo is as follows:

• GroupTax = {100-(100/(1 + 9/100))} + {100-(100/(1 + 9/100))}
• GroupTax = 8.25688073 + 8.25688073
• Applied GroupTax = 16.5137615

It makes 1.2595242 difference from the expected amount. Hence, it may lead you to pay more tax than that you actually need to pay.

This module makes you manage the Price Inclusive For Group Taxes that too by avoiding the miscalculations. Odoo Price Inclusive For Group Taxes facilitates you to apply the tax calculation flawlessly to avoid such errors and gives you the exact figure of the tax to be paid.

Create the group taxes from the Odoo backend

• Odoo Price Inclusive For Group Taxes facilitates you to apply the tax calculation flawlessly to avoid such errors.
• Login to your Odoo database and go to the invoicing module.
• Now, click on the Configuration tab and then go to the ‘taxes‘ menu.
• Edit any existing tax or create a new one; now all you need to do is enable the checkbox Included in Price and add the amount for the tax that needs to be applied.
• You can manage the Price Inclusive For Group Taxes that too by avoiding the miscalculations.

 View the applied group tax on customer's invoice in Odoo

• With this module, you can view the applied group tax on customer's invoice at the Odoo backend.
• You can view the tax name, tax computation, total amount of the order on which the tax is applied, etc.
• The default Odoo algorithm, in this case, calculates the taxes individually for each component from the same tax inclusive sale price (9% two times from the same Base Amount) and adds them together later leading to a miscalculation in taxes.
• The Odoo default tax formula makes you pay more tax than needed.