Three tax statuses are commonly used in Australian businesses:
Tax Inclusive, Tax Exclusive and Tax Excluded / No Tax.
Tax Inclusive indicates that the line amount for an item includes the tax for this item
Tax Exclusive indicates that tax is not included in the line amount for this item
Tax Excluded / No Tax indicates that tax is absent from the line item
Inventory Items, Quotations and Invoices
Each inventory item has the option of choosing the tax status of the items selling price. This status will reflect on quotations and invoices when using the item.
When using this inventory item in quotations and invoices, the tax status of the quotation or invoice will directly affect the line item price. For this example, assume the above inventory item has been set to Unit price includes GST (Inclusive)
When the inventory item is used in quotations or invoices, the price will change based on the tax status of the quotation or invoice
Quotations and Invoices will adjust the subtotal, GST and total based on the tax status
If the quotation or invoice tax status is Tax Inclusive
If the quotation or invoice tax status is Tax Exclusive
If the quotation or invoice tax status is Tax Excluded / No Tax
