Hi @laure.vincent,

This check box defines the basis of the tax calculation for Purchasing / Sales. If this check box is selected, then the basis for tax calculation will be the price including tax.

If not, the basis for tax calculation will be the price. The default setting for this check box is retrieved from the Company/Tax Control/Sales and Procurement/Purchasing group box.

Let me know if you need further clarification.

Kind regards,
Shanuka.

Thank you Shanuka,

From technical/setting perspective, this is clear now. Thanks again!

Do you happen to have examples of countries where this can be commonly used? And business cases? 

Best regards,

Laure

From our experience, it is commonly used in China.  I’m sure other places too, but that is the only company we have setup at the moment for this function.

It depends on whether the quoted or sold price to the customer or as quoted from the supplier commonly is known to include tax.  Having this setting ticked on the company alters the fields that can be updated on various pages.  For example on the Supplier for Purchase Part, the Price incl Tax field becomes active and is the only one that can be updated, the Price field is now blocked from entry.  Similarly on the Sales price lists, the sales price has to be entered on the including tax fields rather than just price.

I don’t know that it is a legal or country based requirement, rather it is based on the common business practice for that company setup.