Profit is a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
Tax is a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
This article will explain the difference in profit calculated with include and exclude taxes.
I. Configure Profit Tax Calculation
Step 1. Go to Settings, Click Module, then Choose Report
Step 2. Go to Basic Settings, then Choose Profit Tax Calculation
You can select Include or Exclude Tax.
Column | Description |
Include Tax | Include tax means that the profit from the total sales + tax transaction will be reduced by the cost |
Exclude Tax | Exclude Tax means that profit comes from Sales at less cost, sales + tax will not be calculated |
II. Examples - Include Tax
Sales + Tax (200,000) - Cost (50,000) = Profit (150,000)
III. Examples - Exclude Tax
Sales (180,180) - Cost (50,000) = Profit (130,180)
You might like to read these related articles below:
To view tax report: Tax Report
To disable tax for a specific product: Disable Tax for Specific Product
To update tax into 11%: How to Update Tax into 11%
DealPOS is an online point-of-sale (POS) application specifically designed for retail businesses in categories like Fashion, Minimarkets, Electronics, Fresh Food, and Building Material Stores.
With DealPOS, you can manage both online and offline store inventory in real-time on a single platform. You can also sell through omnichannel (offline and online) as DealPOS integrates with marketplaces (Shopee, Tokopedia, TikTok Shop, Lazada) and instant web stores (Shopify and WooCommerce).
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