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.
Table of Content :
I. Configure Profit Tax Calculation
I. Configure Profit Tax Calculation
Step 1. Go to setup-more menu-module
Step 2. Select the Report Tab, Enable 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 (3,128,000) - Cost (1,835,015) = Profit (1,292,895)
III. Examples - Exclude Tax
Sales (2,910,000) - Cost (1,835,015) = Profit (1,074,985)
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