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Background documentationTax Calculation in Sales Documents Locate this document in the navigation structure


When you process a sales document, tax is calculated according to the settings made for customers, items, and service. Each row in the document, either an item or a service, stores a tax group. This group enables the system to calculate the total tax amount of the document and lets you generate various tax reports, as required.

First, SAP Business One checks the default tax groups defined in the G/L Account Determination window and displays those tax groups as default.

When you select a customer for the sales document, SAP Business One checks whether this customer is liable for tax or defined as EU. If the customer is tax liable and has an assigned tax group, this tax group overwrites the default one. If no tax group has been defined for the customer, SAP Business One checks every item you select in the document and uses the default group for the item’s row in the document.

You may select any tax group for the document rows, regardless of the default groups.