Field Name / Prompt Field Explanation

GENERAL

Term Name Name of the new term to be created

Trade Group

Trade Group to which it will be tagged.

Note: This is a mandatory field, in which the drop down list provides a selection list for the non-extinct trade groups and their descriptions

ACCOUNTS

Dependent Field Descriptions

Purchase Ledger

Name of Purchase Ledger in which the financial impact related to the particular Term will be reflected.

List will display -

Ledger Name
Type
Nature
Site Applicable
Sub Ledger Applicability

Conditions of display -

Non-extinct Ledgers
General type Ledgers

Note: Selection of Ledgers is optional here

If the ledger is sub ledger applicable, then the Purchase Sub Ledger field will be visible and then sub ledger selection, from the drop down, is mandatory.

List will display -

SLID,
Sub Ledger Name,
Purchase Ledger name

Conditions of display -

Sub ledgers belonging to the Purchase ledger selected before
Non-extinct sub ledgers

Purchase Return Ledger

Name of Purchase Return Ledger in which the financial impact related to the particular Term will be reflected.

List will display -

Ledger Name
Type
Nature
Site Applicable
Sub Ledger Applicability

Conditions of display -

Non-extinct Ledgers
General type Ledgers

Note: Selection of Ledgers is optional here,

If the ledger is sub ledger applicable, then the Purchase Return Sub Ledger field will be visible and then sub ledger selection, from the drop down, is mandatory.

List will display -

SLID,
Sub Ledger Name,
Purchase Ledger name

Conditions of display -

Sub ledgers belonging to the Sales ledger selected before
Non-extinct sub ledgers

ITEM CHARGES Tab

Add Row button Clicking on this button adds a blank row to the end of the last used row. Adding a row is necessary for including multiple charges in the term.

Sequence (Seq.) The sequence of charges to be applied on items for a particular term

Charge

The name of the charge to be applied on items has to be mandatorily selected from a drop down list which would display the following fields -

Charge Name,
Factor,
Rate Source,
Chargeability

Conditions -

Charge is applicable on each item.
In the Item Charges tab, only those charges which are applicable on items will be displayed.
Trade Group should either be the same as that specified in this particular Term or must be blank.
Same Charge cannot be selected twice.
In case of Charges which are Tax Components -
1. Only 2 such Tax component Charges are allowed per Purchase Term, including Document Charges
2. In case of multiple tax component charges (maximum of 2), source of at least one tax component one must be Excise tariff. The rate source of the other could be picked either Charge Master or Tax Definition of the Item.

Include in TDS (checkbox) This checkbox specifies if a particular charge will be considered for calculation of TDS or not. If checked, the charge against which it is displayed will be considered in the net value for TDS calculations. Suppose, there is a charge called ITax to be levied on some items and to be considered for TDS calculation. Then Include in TDS has to be ticked and the charge will be considered.

Sign

This combo list has only two values denoting if the charge will be added to or subtracted from basic value to get the net value of an invoice.

E.g. Discount must be subtracted but tax must be added.

The positive or negative sign is displayed by default as provided in the charge master; user can edit if required.

Factor

This value denotes the percentage or amount by which the charge will be applied

Factor % or Factor Amount -

By default the value provided in charge master will get populated, user can edit if required.
If nature of the charge is declared in Charge Master as a percentage it will show as a percentage; other wise it will show as a fixed amount.
If the charge is declared as a percentage, it has to be ≦ 100
Can be zero or Null.
Cannot be negative.

Basis This field shows whether the Factor applied is a % or an Amount This display field picks the value as provided in the Charge master.

Expression

This is a display field for charge calculation formula.

The expressions may appear as -

1. 1. 1. B when only the Basic value is used. Basic here means Item Value (Quantity * Rate).
    2. B + 1 when the amount of charge sequence 1 is added with the Basic value for Item charge.
    3. B-1+2 when the amount of charge sequence 1 is subtracted from the Basic value and the amount of charge sequence 2 is added to it thereafter for Item charge.
    4. 3 when the amount of charge sequence 3 is only considered for building the Expression.

Allow modification in document

The charge may be modified in applied documents if the checkbox given is ticked.

DOCUMENT CHARGES Tab

Add Row button Clicking on this button adds a blank row to the end of the last used row. Adding a row is necessary for including multiple charges in the term.

Sequence (Seq.) The sequence of charges to be applied on whole document for a particular term.

Charge

The name of the charge to be applied on whole document has to be mandatorily selected from a drop down list which would display the following fields -

Charge Name,
Factor,
Source,
Tax

Conditions -

Charge is applicable on whole document.
In the Document Charges tab, only those charges which are applicable on the entire document will be displayed.
Trade Group should either be the same as that specified in this particular Term or must be blank.
Same Charge cannot be selected twice.
In case of Charges which are Tax Components -
1. Only 2 such Tax component Charges are allowed per Sales Term, including Item Charges
2. In case of multiple tax component charges (maximum of 2), at least one must be selected from Excise type. The rate of the other could be picked either from Charge Master or Tax Master.

Sign

This combo list has only two values denoting if the charge will be added to or subtracted from basic value to get the net value of an invoice.

E.g. Discount must be subtracted but tax must be added.

The positive or negative sign is displayed by default as provided in the charge master; user can edit if required.

Factor

This value denotes the percentage or amount by which the charge will be applied

Factor % or Factor Amount -

By default the value provided in charge master will get populated, user can edit if required.
If nature of the charge is declared in Charge Master as a percentage it will show as a percentage; other wise it will show as a fixed amount.
If the charge is declared as a percentage, it has to be ≦ 100
Can be zero or Null.
Cannot be negative.

Basis This field shows whether the Factor applied is a % or an Amount This display field picks the value as provided in the Charge master.

Expression

This is a display field for charge calculation formula.

The expressions may appear as -

1. 1. 1. B when only the Basic value is used. The Basic value is calculated as Item gross value + item charges.
    2. B + 1 when the amount of charge sequence 1 is added with the Basic value for Document charge.
    3. B-1+2 when the amount of charge sequence 1 is subtracted from the Basic value and the amount of charge sequence 2 is added to it thereafter for Document charge.
    4. 3 when the amount of charge sequence 3 is only considered for building the Expression.

Allow modification in document The charge may be modified in applied documents if the checkbox given is ticked.

Expression Builder - COMMON TO BOTH ITEM AND DOCUMENT CHARGES

The Expression Builder This area is used to define the Formula of the applicable charges in actual calculable terms.

Field Field Description Conditions -

Operators for Expression This combo list has only two values denoting if the charge will be added toor subtracted from the applied charges to get the desired formula The positive or negative sign is used to build the formula.

Charges for Expression

This is a list of charges applicable

Available Charge Name List -

Only those charges which are selected before the one for which formula is getting defined/edited i.e. charge whose sequence is lower than selected charge for expression building.
By default the Basic will be displayed in the beginning of the charge list which reflects gross value of the applied document.
No. of Applicable Charges

Note: The maximum number of applicable charges for each term is 10. Although they may be selected in any combination of item and document level charges.

Insert This button will insert the defined formula in the Expression field.

Clear This button will delete the defined formula from the Expression field.

How to define a formula?

After putting in the Term Name, selecting the applicable Trade Group, Ledgers and Sub Ledgers in the General and Accounts section; the user comes to the Item Charges tab or Document Charges tab. Here the Charge, the Sign, and Factor along with Type will be displayed automatically from Charge master and the user has to go to the Expression Builder to create his formulas for calculation of charge amount.

Note : The user has to create a separate formula for each charge, included in both tabs of the term.

Follow examples given below:

Suppose the term has the following charges

Seq.	Charge name	Calculation	Reflection in the Expression Builder
1.	Discount	Discount of 10% on the gross value of the document `Note: Discount has a negative sign in the Charge Master; which means it is always deducted from the Basic`	The existing formula i.e. the value Basic is displayed. Click on `Insert` button to get it to the Expression field as `B`.
2.	VAT	VAT of 2% on amount after discount `Note: VAT has a positive sign in the Charge Master` Note : VAT may also be calculated on the Basic	Select the charge Basic, click on `Insert` button. Select from the list of operators. Select the next charge, Discount, from the list and click on `Insert` button. Since VAT is going to be applied after Discount; the formula for that becomes - B+1 (+ sign is provided even for a negative charge because mathematically - and + = -, but - and - = +)
3.	Excise Duty	Excise Duty of 0.3% on the after VAT amount `Note: Excise Duty has a positive sign in the Charge Master`	Select the charge Basic, click on `Insert` button. Select from the list of operators. Select the next charge, Discount, from the list and click on `Insert` button. Select from the list of operators. Select the next charge, VAT, from the list and click on `Insert` button. Since Excise Duty is going to be applied after VAT; the formula for that becomes - B+1+2
4.	Education Cess	Education Cess 0.1% on Excise Duty `Note: Education Cess has a positive sign in the Charge Master`	Select the charge Excise Duty. Since Education Cess is going to be applied on Excise Duty; the formula for that becomes - 3

Alert

Note:

Two charge name will always be joined by an operator, i.e. multiple charge name cannot be selected together.
Two operator can never be selected together, there must be a charge name on both side.
Formula cannot start with an operator.
Formula cannot end with an operator.
Formula cannot be blank i.e. formula is mandatory for every charge selected in term.
Document Charges are calculated as Basic + Item Charges.

FOOTER

Save This button will save the Term.

Close This button will close the Add Term window.

What is the need for creating Purchase Terms?

Prerequisites

Step-by-step guide

Prerequisites

Step-by-step guide

Prerequisites

Step-by-step guide

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