Basically In the cement industry, the pricing of cement is a complex process that involves various charges and taxes. The net value or base price of cement is inclusive of taxes, which means that the price that a customer pays for cement includes the taxes as well. However, in order to determine the actual base price of cement, it is necessary to calculate the taxes in reverse.


Let us take an example to understand this concept better.


I have a total price including ( base price + discount + tax) so we need to derive actual base price ( main price ) through reverse percentage of discount and tax.


Ex- base price - 2000

      Discount-         10%

_______________________

 after discount     1800

Tax-                        18%

_______________________

     Total-                2124


we have total price-2124 need to find out actual base price 2000. But simply to deduct- 18%  from 2124 will not work to get amount 1800.

We need to calculate reversely.



So in the below example we can see we have total value 2124, which we have inserted manually for base price (PR12). Now to  – 10% (Discount - K005) reversely calculated percentage from 2124 and we have got amount- 236. then 18% tax levied onto get actual base value of 2000/-





Settings :


For base Price : This is a manual condition to insert the amount (net value inclusive of taxes) manually.

This can also be an automatic condition for that we need to maintain the access sequence and condition record. 



Setting for Discount : to calculate reversely: Calculation type- I (percentage - travel expense) will automatically reversely calculate the amount from the previous condition.



Setting for tax condition : Similarly Calculation type is - I and condition category is - D (tax).