As Additional Excise
In the Indian sub-continent, a manufacturing tax or Excise is levied. For some products, a supplementary levy on the Basic Excise Duty is charged or Additional Excise Duty. This is a surcharge calculation.
For example, an Additional Excise Duty of 10% on the Basic Duty. While the calculation method is identical to As Surcharge, the result is to provide a Total Excise Payable calculation accurately during Invoice printing.
As a Flat Rate
This is helpful when you wish to specify a standard mark-up/down on an invoice - say 100 for every invoice, independent of the quantity/value of the invoice.
As Surcharge
This helps you to calculate the value based on the immediately preceding figure. For example, a Sales Tax of 10% is applicable on an invoice, which would be calculated on the value of goods sold. On this, a 'Surcharge' of 5% - i.e. 5% of the Sales Tax value is applicable.
As Total Amount Rounding
This is the last line in an invoice. You will have to create an account, which would carry the rounding difference. As the other values of the invoice are calculated, this account would automatically get adjusted to keep the Total Invoice Value to the desired rounding limits. You have to mark this invoice as Remove if Zero? Yes so that the account head is not retained in the invoice printouts if no rounding is applicable.
As User Defined Value
This allows you to specify a value while creating the invoice. You will use this when the basis of calculation is neither Value nor Quantity dependent and therefore needs to be entered every time you create an invoice.
Based on Quantity
Use this for calculations that are based on the 'Total Qty' supplied.
For example, you may have Freight or Forwarding charges as 2.00 per Kg, and if the total qty supplied in the invoice is 200.000 Kg, then the amount should become 400.00. The Value Basis also needs to be provided as '2.00/Kg' or '0.50/Pc' as the case may be.
On Current Sub Total
In certain environments, taxes are applicable on the Total Goods Value as well as supplementary charges like Excise Duty, Packing Charges. Normally, when the tax calculation method is specified as On Total Sales the calculations are based on the Total Goods Value only. If you want to include supplementary charges, then set On Current Sub Total as the type of calculation.
On Item Rate
This is used for both VAT as well as Excise Duty style calculations. You can specify the Rate of Tax applicable for each Stock Item. The advantage is that it enables you to combine multiple Tax Rate products in the same Invoice and yet get the correct ones picked up for each Tax bracket.
On Total Sales
The most common basis of Tax Calculation is on the total value of goods/services. This method uses the sum of Stock Items used in the invoice for calculations.