Applying a Discount to all Items from the Discount Field
It is important to understand how using the different discount methods affect your tax calculation. In the screenshots, the items, tax, and value of the discount are the same, but the choice of discount method yielded different tax amounts.
Discount Rate Across All Items
In sales order Taxable Items, Non Taxable Items are there then there a difference in tax of discount occured . To solve the issue below calculation used.
| Discount to All Items using Discount Field | ||||
|---|---|---|---|---|
| Net Price | Tax | Total | Notes | |
| Taxable Items (96.6% of total) | $285,00 | $17.10(6% of $285.00) | $302.10 | |
| Non Taxable Items (3.4% of total) | $10.00 | 0.00 | ||
| Subtotal | $295.00 | $17.10 | $312.10 | |
| Taxable discount portion | -$29.5696.6% of discount amount ($30.60) applied for taxable items | -$1.77tax to deduct from taxable portion of discount (6% of $29.56) | -$31.33 | Applied to whole transaction. Tax is prorated based on taxable and nontaxable net totals |
| Nontaxable discount portion | -$1.043.4% of discount amount ($30.60) applied for nontaxable items | 0.00no tax to deduct | -$1.04 | |
| Totals | $264.40 | $15.33 | $279.33 | Important In this case, the Discount Rate across all items takes nontaxable items into account and pro-rates the tax discount accordingly. |
| Taxable Discount 96.6% of $30.60 | -$29.56 | $1.77 | -$31.33 | |
| Non-tax Discount | -$1.04 | 0 | ||
| Discount Totals | -$30.60 | -$1.77 | -$31.33 |