# Purchase Tax Config
Purchase Tax Config maps default purchase taxes to combinations of purchase type, item group, and item. When a user adds an item on a purchase bill, the system applies matching tax rules automatically.
Overview & List View
Go to Purchase → Settings → Purchase Tax Config from the left menu.
Tax rates themselves are maintained under Accounts → Settings → Taxes. Purchase Tax Config only links which taxes apply on purchase for each scope.
This screen is an inline table — not a standard list. Add rows at the bottom and delete existing rows with the trash icon. There is no separate edit form.
Configurations are matched in priority order: exact match on purchase type + item group or item, then broader rules with blank purchase type, item group, or item. The first matching row wins.
List columns
| **Column** | **Description** |
|------------|-----------------|
| Purchase Type | Optional scope by Purchase Type. |
| Item Group | Optional scope by item group. |
| Item | Optional scope by single item. |
| Taxes | One or more purchase taxes applied when the row matches. |
Purchase Tax Config
Fields
Each row defines one tax mapping:
| **Field** | **Description** |
|-----------|-----------------|
| Purchase Type | Optional. Limits the rule to one Purchase Type. Leave blank for all types. |
| Item Group | Optional. Applies to all items in the group. Cannot be combined with Item on the same row — choose one or the other. |
| Item | Optional. Applies to a single item. Cannot be combined with Item Group on the same row. |
| Taxes * | One or more purchase taxes (tax type = purchase) from Accounts. Required on every row. |
Validation rules when adding a row:
- At least one of Purchase Type, Item Group, or Item must be selected.
- Item Group and Item cannot both be filled on the same row.
- Taxes is required.
How It Works
When an item line is added on a purchase bill, the system resolves taxes in this order:
- Purchase type + item — exact match on form type and item
- Purchase type + item group — form type and item group match (when no item row)
- Broader fallbacks — rows with blank purchase type, item group, or item
If the purchase type has Require tax for every item enabled, save is blocked when the resolved tax list is empty. RCM Applicable on the purchase type flags reverse charge treatment where your company accounts for tax instead of the supplier.
Config provides defaults at item selection. Users who can edit purchase documents can still adjust taxes on the line when editing drafts.
Connected reports: Tax amounts flow into Bill Wise Purchase, Bill Wise Purchase Advanced, Bill Item Wise Purchase, and accounts tax reports.
Actions
| **Action** | **Description** |
|------------|-----------------|
| Add (+) | Saves a new row from the blank entry line at the bottom of the table. |
| Delete (trash) | Removes a configuration row. |
There is no separate edit form — delete and re-add to change a mapping.
FAQ
Why are taxes not appearing on my purchase invoice line?
Check that a matching Purchase Tax Config row exists, taxes are active in Accounts, and the purchase type on the bill matches the rule.
Which rule takes priority — item or item group?
The system prefers the most specific match (purchase type + item, then purchase type + item group, then fallbacks with blank fields).
Can I set different taxes for the same item on different purchase types?
Yes. Create separate rows with the same item but different purchase types.
Does this override taxes entered manually on a line?
Config provides defaults at item selection. Users who can edit purchase documents can still adjust taxes on the line when editing drafts.
What if no purchase tax config row matches?
Tax must be selected manually on the line, or come from item or supplier defaults configured elsewhere in Accounts.
Can I deactivate a tax config row?
Yes. Inactive rows are ignored on new documents. Existing approved bills keep the taxes they were posted with.
Does purchase tax config apply to debit notes and expenses?
Rules apply wherever purchase type and item drive default tax on purchase documents — primarily invoices, orders, and quotations. Confirm tax on debit notes and purchase expenses when entering drafts.
Should I create a catch-all row with blank item and group?
Optional. Blank item group fields act as broader fallbacks after specific item and item-group rows are checked.