This question is related to Retail industry.
Price for a material was say 100 without Tax, is already in stock.
Now, new tax is introduced as 5% for the materials. The selling price of the material should now be inclusive of the tax. My client is asking me to change the price of the material, so that the selling price reflects the value including tax.
Material Price (landed cost) = 100
Margin = 30
Selling Price was = 130
New Tax is 5 %
now, with tax selling price will be = 136.5
Material price to be changed as 136.5, so that in billing in store it should reflect 130 (material price) + 6.5 (tax)
Is this correct ?
What is the best practice to implement this in retail industry?