Hello, good morning. Regarding cost records, I have a configuration for taxes included in the price. Considering this detail, in my product card, is it correct to enter the cost before tax or the integrated tax?
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Hello, good morning. Regarding cost records, I have a configuration for taxes included in the price. Considering this detail, in my product card, is it correct to enter the cost before tax or the integrated tax?
Thank you so much
Hi,
In Odoo, the cost field on the product card should always be entered as the cost without taxes, even if your sales prices include taxes. This is because the product cost is used for inventory valuation, gross profit calculation, and accounting entries, and taxes are not part of the actual cost—they are collected on behalf of the government. Odoo handles taxes separately in sales and purchase transactions, calculating them automatically based on your tax configuration. For example, if a purchase price is $120 including a 20% tax ($20), the actual product cost is $100, and this is the value you should enter in the product card. Entering the tax-inclusive price would overstate your inventory value and distort profit calculations. Therefore, always use the pre-tax amount as the product cost and let Odoo manage taxes in transactions.
Hope it helps.
If you want taxes included in the price, enter the integrated tax price. If you are selling the item for $1.00, the cost per item will be $0.92 and tax will be $0.08 cents (Depending on your tax rates, this will vary, but you get the point i hope!) So increase all your base prices by the tax rate before entering them into the cost record on Odoo. Hope this helps!
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