Purchase

Apply Exclusive Tax to a Purchase

Exclusive Tax controls whether configured exclusive item tax is added above purchase cost. In the current receiving flow, clearing it sets line tax to zero rather than extracting included tax from the entered price.

Menu path
Purchase -> Purchases -> New Purchase or Edit -> Exclusive Tax
Verified from
Posnic demo and current POS source reviewed on 2026-09-08
Technical source evidence

frontend/modules/receivings_write.html exclusive_tax tooltip and tax total, frontend/static/script/js/modules/js/receiving_add.js addReceivingLineItems exclusive_tax click handler and save payload, api/src/models/receiving.model.js receiving line tax totals and exclusive_tax, api/src/utils/money-invariants.js exclusive tax handling

Exclusive Tax on purchase entrySelect Exclusive Tax only when entered item purchase costs are before tax and the configured item tax must be added above them.
Verify branch tax setupThe branch tax regime and item tax assignments must be correct before purchase tax is trusted.
Verify saved purchase taxRun tax reports for the same period after testing the invoice calculation; saved tax values drive historical reports.

Choose the Correct Purchase Treatment

Supplier pricingExclusive TaxExpected Posnic behavior
Item cost is before tax and invoice adds tax separatelySelectedConfigured exclusive item rate is shown and added above the item amount.
Supplier item price is tax-inclusiveDo not assume clearing calculates inclusive taxCurrent receiving flow sets line tax to zero; it does not extract an included tax component.
Supplier invoice has no purchase taxCleared, after evidence reviewLine tax is zero and no separate tax is added.
Some lines taxed and some zero-ratedSelectedEach item's configured rate controls the line; zero-rated items remain zero.
Tax treatment is uncertainDo not guessKeep the invoice, verify item setup and ask the accountant before receiving live stock.

Test the Invoice Before Live Receiving

  1. Choose one supplier invoice with a simple known item quantity, pre-tax cost, tax rate and final total.
  2. Confirm the branch tax regime and item tax assignment in Manage -> Tax and the item record.
  3. Open Purchase -> Purchases -> New Purchase and select the supplier.
  4. Add the test item and enter its supplier purchase cost.
  5. Select Exclusive Tax and compare the displayed line tax and total with the invoice.
  6. Clear Exclusive Tax and observe that the visible tax rate and tax amount become zero.
  7. Select the state that matches the supplier document, add any real charges and compare Invoice total (incl. tax).
  8. Save only when the line, tax and grand total are understood and approved.

How the Current Receiving Calculation Behaves

ValueExclusive Tax selectedExclusive Tax cleared
Visible tax columnShown for purchase lines.Hidden from the line table.
Exclusive item rateRestored from the item's configured exclusive tax rate.Set to zero for the receiving calculation.
Line amountPurchase cost x quantity + calculated line tax.Purchase cost x quantity with zero line tax.
Tax totalSum of calculated purchase-line tax.Zero for lines processed through this control.
Additional chargesAdded separately to the grand total and not taxed by this control.Still added separately and not taxed by this control.
Declared invoice comparisonIncludes calculated exclusive tax.Compares without a separately calculated line-tax amount.

Apply Exclusive Tax on a Purchase

  1. Open New Purchase or an eligible purchase Edit screen.
  2. Select the supplier and verify its state and tax identity.
  3. Add each received item with the physical quantity and pre-tax purchase cost.
  4. Select Exclusive Tax.
  5. Review the restored rate on every line; use the line tax edit only with approved evidence.
  6. Confirm Sub Total, Tax, Charges and Grand Total against the supplier invoice.
  7. Enter the supplier's final Invoice total (incl. tax) and resolve any mismatch warning.
  8. Set Input credit claimable separately, attach evidence and save once.

Exclusive Tax Is Separate from ITC

ControlQuestion answeredDoes not answer
Exclusive TaxShould configured item tax be added above purchase cost?Is the resulting purchase tax legally claimable?
Input credit claimableShould saved purchase tax enter Tax Payable input credit?Should tax be added to the purchase price?
Item tax assignmentWhich rate and tax identity belong to the item?Whether this specific invoice is eligible for credit.
Invoice total mismatchDoes supplier-stated total agree with Posnic's calculated total?Whether tax classification or ITC treatment is legally correct.

Do Not Use Clearing as Inclusive-Tax Extraction

The current purchase receiving path stores its lines as exclusive-tax lines and uses zero when the control is cleared. It does not calculate the tax portion embedded in a tax-inclusive supplier price. Therefore a total can look correct while purchase tax reports contain zero for that line.

  • Do not claim an extracted inclusive tax amount that Posnic did not calculate.
  • Do not select Exclusive Tax merely to manufacture tax above an already tax-inclusive price.
  • Do not reduce purchase cost by guesswork to force the invoice to match.
  • Use a controlled item-cost/tax setup approved for the supplier's invoice convention.
  • Escalate inclusive purchase invoices to the accountant when reportable tax must be separated.

Correct a Tax-Mode Mistake

  1. Open the saved purchase and compare its line tax and total with the attached invoice.
  2. Check Tax Summary or Tax Payable for the same date before changing history.
  3. Obtain approval and confirm the purchase can still be edited.
  4. Open Edit and set Exclusive Tax according to the supplier price basis.
  5. Recheck each line rate, subtotal, tax, charges, declared invoice total and mismatch message.
  6. Save and reopen the same purchase number.
  7. Rerun the tax report and review Inventory Logs if any quantity changed; tax-mode correction alone should not be treated as a physical stock event.

Troubleshooting and Controls

ProblemLikely reasonControlled response
Tax column shows 0%Exclusive Tax is cleared or the item has no exclusive rate.Verify the checkbox and item tax setup before editing the rate.
Grand total is higher than invoiceTax was added above a price that already included it, or a charge is duplicated.Confirm supplier price basis and reconcile lines, tax and charges.
Grand total matches but purchase tax is zeroExclusive Tax was cleared; no inclusive portion was extracted.Do not assume reportable tax exists in Posnic; obtain accountant-approved correction.
Mismatch appears after selecting Exclusive TaxSupplier declared total, line cost, rate or charge treatment differs.Reconcile each component instead of overwriting the declared total.
Tax rate changed unexpectedlyThe line tax editor or item setup differs from the invoice.Check the saved item and tax rate; create or edit rates only with authorization.
Cannot edit tax modePurchase status or employee permission prevents changes.Preserve evidence and use the approved correction, return or void workflow.
Tax Payable excludes the purchaseITC eligibility is off or the purchase is cancelled, independent of Exclusive Tax.Review the No credit state and purchase register separately.

End-of-Day Purchase Tax Check

  • Review purchases with mismatch or No credit badges.
  • Confirm supplier pre-tax versus tax-inclusive price conventions are documented.
  • Compare material purchase tax to supplier invoices and Tax Payable register rows.
  • Investigate zero-tax purchases before assuming they are exempt or inclusive.
  • Retain invoice evidence and accountant approval for corrections.

Related Manual Pages

Purchase Receive Packs as Units Posnic always stores received stock in the item's base unit. For configured items, the receiving row offers an explicit xN purchase-unit button that multiplies the entered pack count once and recalculates the line. Purchase Input Credit Eligibility The purchase eligibility checkbox controls whether saved purchase tax enters Posnic's Tax Payable input-credit calculation. It does not change tax rates, item cost, stock or the supplier invoice. Purchase Invoice Total Mismatch Posnic compares the supplier's declared tax-inclusive invoice total with its calculated purchase total. A difference above 0.50 is saved as a visible warning instead of blocking received stock. Purchase Freight and Charges Additional purchase charges increase the purchase grand total. They remain separate from item unit cost and tax so operators can reconcile supplier paperwork without distorting stock lines. Purchase Attach Purchase Files Purchase attachments keep supplier paperwork beside the saved transaction. Posnic accepts PDF and image files up to 10 MB on purchase orders and received purchases. Purchase Edit a Purchase Editing changes the original purchase. On received documents, tracked stock moves only by the difference between the old and new lines; partial receipts preserve quantities already accepted and must still be completed through Receive. Catalog Assign Item Tax Each taxed item stores its selected tax, tax method and whether the selling price includes tax or receives tax on top. Reports Tax Payable Tax Payable is the deeper accounting control. It applies purchase ITC eligibility, calculates monthly payable or carried credit and exposes the supplier documents behind the input total. Settings Tax System Tax settings decide whether new items start with tax and how documents calculate GST, VAT, sales tax or no tax.