MESOS separates Pricing Mode from Tax.
- Pricing Mode tells MESOS whether the price you enter is before tax or already includes tax.
- Tax is determined separately by MESOS based on your Tax Compliance settings and transaction information.
Choosing Price Excludes Tax or Price Includes Tax does not select a tax rate.
1. Price Excludes Tax #
Choose Price Excludes Tax when the price entered is before tax.
Example #
If the price is RM100.00 and MESOS determines that 8% tax applies:
| Amount | |
|---|---|
| Price | RM100.00 |
| Tax | RM8.00 |
| Total | RM108.00 |
MESOS adds the applicable tax on top of the entered price.
Use this when your price is normally quoted as:
RM100 + applicable tax
2. Price Includes Tax #
Choose Price Includes Tax when the price entered already includes tax.
Example #
If you enter RM108.00 and MESOS determines that 8% tax applies:
| Amount | |
|---|---|
| Price entered | RM108.00 |
| Net amount | RM100.00 |
| Tax included | RM8.00 |
| Total | RM108.00 |
MESOS does not add another RM8.00.
Instead, MESOS calculates the tax amount already included in the entered price.
Use this when your price is normally quoted as:
RM108 inclusive of applicable tax
The actual tax rate in MESOS is determined by Central Tax; the 8% examples above are only to explain how Inclusive and Exclusive pricing works. MESOS defines Pricing Mode as price interpretation rather than statutory tax selection.
What Does “Automatic” Tax Mean? #
When the Tax field shows:
Automatic
it means:
MESOS will determine the applicable tax automatically.
You do not need to manually choose a tax rate.
Automatic does not mean:
- tax is always charged;
- tax is always 0%;
- every item uses the same tax.
MESOS Central Tax may consider information such as:
- company Tax Compliance settings;
- product or service tax classification;
- customer or supplier information;
- transaction type;
- transaction date;
- jurisdiction;
- exemption or relief information;
- pricing mode.
MESOS then determines the appropriate tax treatment for the transaction.
What Does “Inherited” Mean? #
When Pricing or Tax shows:
Inherited
it means MESOS has carried the pricing and tax context from an earlier source document.
For example:
Sales Order → Delivery Order
or:
Purchase Order → GRN
The Delivery Order or GRN does not make a new independent tax decision.
This keeps the transaction consistent from one document to the next.
Sales Documents #
Quotation #
A Quotation allows you to choose:
- Price Excludes Tax
- Price Includes Tax
Tax is calculated automatically by MESOS based on the transaction.
At Quotation stage, MESOS provides a Central Tax quote or preview rather than allowing an arbitrary statutory tax rate to become the authority.
Sales Order #
A Sales Order also allows you to choose:
- Price Excludes Tax
- Price Includes Tax
The Tax field may display:
Automatic
This means MESOS determines the applicable tax using Central Tax.
Example #
If you select Price Excludes Tax:
| Amount | |
|---|---|
| Price | RM100.00 |
| Tax determined by MESOS | RM8.00 |
| Total | RM108.00 |
If you select Price Includes Tax:
| Amount | |
|---|---|
| Price entered | RM108.00 |
| Net amount | RM100.00 |
| Tax included | RM8.00 |
| Total | RM108.00 |
Delivery Order #
A Delivery Order is mainly used for fulfilment and stock movement.
It is not intended to become another independent pricing or tax decision point.
Manual Delivery Order #
For a manually created Delivery Order:
- Pricing Mode: Automatic
- Tax: Automatic
MESOS applies the configured sales pricing and tax context automatically.
The user does not need to choose a new tax rate or another Inclusive/Exclusive setting.
Delivery Order from Sales Order #
When a Delivery Order is created from a Sales Order:
- Pricing Mode: Inherited
- Tax: Inherited
For example:
Sales Order
Price Excludes Tax
↓
Delivery Order
Price Excludes Tax · Inherited
MESOS preserves the existing transaction context instead of recalculating an unrelated tax treatment. Delivery Orders are designed as operational/inheritance documents rather than fresh tax-selection documents.
Invoice #
Invoice supports:
- Price Excludes Tax
- Price Includes Tax
MESOS performs the final Central Tax determination for the sales transaction at Invoice stage.
The resulting tax information is preserved with the document so historical invoices do not change simply because tax settings are updated later.
Purchase Documents #
Purchase Order #
A Purchase Order allows you to choose:
- Price Excludes Tax
- Price Includes Tax
The Tax field may display:
Automatic
This means MESOS determines the applicable purchase tax treatment automatically.
The user chooses how the supplier price should be interpreted, not the statutory tax rate.
MESOS treats Purchase Order as a Central Tax quote/preview document with Inclusive/Exclusive pricing support.
Example — Price Excludes Tax #
Supplier price:
RM1,000.00 before tax
If MESOS determines RM80.00 tax:
| Amount | |
|---|---|
| Supplier Price | RM1,000.00 |
| Tax | RM80.00 |
| Total | RM1,080.00 |
Example — Price Includes Tax #
Supplier price:
RM1,080.00 including tax
MESOS derives:
| Amount | |
|---|---|
| Total Price | RM1,080.00 |
| Net Amount | RM1,000.00 |
| Tax included | RM80.00 |
Goods Received Note — GRN #
A GRN is mainly used to record goods received and stock movement.
It is not intended to be another independent pricing or tax authority.
Manual GRN #
For a manually created GRN:
- Pricing Mode: Automatic
- Tax: Automatic
MESOS applies the configured purchase pricing and tax context automatically.
GRN from Purchase Order #
When a GRN is created from a Purchase Order:
- Pricing Mode: Inherited
- Tax: Inherited
For example:
Purchase Order
Price Excludes Tax
↓
GRN
Price Excludes Tax · Inherited
The Purchase Order → GRN flow preserves the source tax context and line relationship instead of making a new independent tax decision.
Purchases #
Purchases supports:
- Price Excludes Tax
- Price Includes Tax
MESOS performs the final Central Tax determination for the purchase transaction at Purchases stage.
MESOS may consider purchase-specific information such as:
- supplier information;
- supplier location;
- product or service classification;
- transaction date;
- imported service treatment;
- exemption or special tax treatment;
- pricing mode.
The final tax treatment is determined centrally rather than by an arbitrary manual tax-rate field.
Quick Reference #
| Document | Pricing Mode | Tax |
|---|---|---|
| Quotation | Price Excludes Tax / Price Includes Tax | Automatic |
| Sales Order | Price Excludes Tax / Price Includes Tax | Automatic |
| Manual Delivery Order | Automatic | Automatic |
| Sales Order → Delivery Order | Inherited | Inherited |
| Invoice | Price Excludes Tax / Price Includes Tax | Automatic / Final Central Tax determination |
| Purchase Order | Price Excludes Tax / Price Includes Tax | Automatic |
| Manual GRN | Automatic | Automatic |
| Purchase Order → GRN | Inherited | Inherited |
| Purchases | Price Excludes Tax / Price Includes Tax | Automatic / Final Central Tax determination |
Automatic vs Inherited #
Automatic #
MESOS determines the pricing or tax treatment automatically.
Usually shown when the document does not have an earlier source document to inherit from.
Example:
Manual Delivery Order
Pricing: Automatic
Tax: Automatic
Inherited #
MESOS carries the pricing and tax context from the source document.
Example:
Purchase Order → GRN
The GRN keeps the Purchase Order pricing and tax context.
Why Can’t I Select Any Tax Rate I Want? #
MESOS uses Central Tax as the tax authority.
Product or service information provides tax classification and transaction facts, but an old Product Tax field or arbitrary document tax-rate dropdown does not determine the final statutory tax treatment.
This helps prevent inconsistencies such as:
Sales Order: Tax applies
↓
Delivery Order: manually changed to No Tax
↓
Invoice: conflicting tax treatment
or:
Purchase Order: Tax applies
↓
GRN: manually changed
↓
Purchase: inconsistent tax treatment
MESOS therefore keeps tax determination centralized and preserves the tax context between related documents.
What If No Tax Applies? #
Automatic tax does not mean tax must be charged.
After MESOS evaluates the transaction, the result may be:
- taxable;
- no tax;
- exempt;
- out of scope;
- another configured tax treatment.
If no tax applies, MESOS calculates the tax amount as RM0.00.
What If Tax Configuration Is Incomplete? #
MESOS should not silently guess a tax rate from an old Product Tax field.
If required tax information is incomplete, MESOS may require review or prevent the transaction from being finalized until the tax configuration is corrected.
Simple Rule to Remember #
Price Excludes Tax
The entered price is before tax.
MESOS adds tax if applicable.
Price Includes Tax
The entered price already includes tax.
MESOS calculates the tax contained within the price.
Automatic
MESOS determines the appropriate pricing or tax treatment.
Inherited
MESOS carries the pricing or tax treatment from the source document.
You choose how the price is entered. MESOS determines the applicable tax.