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Having trouble with taxable item combined with non taxable time and sales tax.

I'm having trouble getting my 6.5 sales tax to properly calculate using an invoice.

 

1) I only have one sales tax enabled at 6.5%, all others are not.

2) The sales tax applies to all items except variable item shipping

3) Discounts are either fixed amounts, or variable $ or variable %

 

1) I pick an item for $295.  Tax correctly calculates as $19.18. When I expand the item, I see the 6.5% sales tax box checked.

2) I pick a fixed discount of $45.  The subtotal is correctly updated to $250 and the sales tax is correct at $16.25.

3) I delete the discount, and we're correctly back to $295+$19.18.  I add a variable item called "Shipping" with an amount of $40.  I expand the item and do not see any sales tax checked.  The subtotal is correct at $335 and the sales tax is correct at $19.18 based on $295.

4) I add a fixed discount of $45.  The subtotal is correct at $290 ($295 item taxable + $40 shipping no taxes - $45 discount) but the 6.5% sales tax now shows $16.60 instead of $16.25 (($295-$45)*.065). 

 

At 6.5%, the $16.60 sales tax amount would be based on a sale of $255.38 (16.6/.065).

 

Help !!!!

 

 

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More reading on this site shows me that a discount item applies to "all" items.  So, my $45 discount is somehow pro-rating between the $295 taxable merchandise and the $40 non-taxable shipping.  How it does it escapes me.  

 

When on my iphone and android, I see that I can apply a discount to an individual item.  However, I've got a number of discounts, both % discounts and $ discounts, and a variable discount, but the list of available discounts on my phone is only showing me 3 percentage discounts.  I'm wondering of there's a way to modify or expand that? 

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Hi! did you ever find a fix for this on your computer? I just want the discount to be applied without tax. Or learn how to apply the discount to individual line items.

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Hello @DebbieDeb! So all Discounts are applied before taxes. Currently dollar and variable discounts will be "flat" and distributed across all the itemizations. 

 

Percentage discounts can be applied to a specific item or an entire sale. 

 

I hope this helps! If you have any questions please let me know! 

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Beta Member

I'm having this issue as well.  I want to apply the discount to the products/merchandising only and not the non-taxable items like UPS shipping which I treat as a pass through.  Are there any plans to allow users to select whether specific items should be included in discounts when a flat rate ($) is chosen as the discount method.

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Hello @LOC

 

I don't think itemized dollar amount discounts are in the works, but I'll make sure to pass the suggestion along to our Item Team. Right now percentage discounts are the only way to apply a discount to a specific item. 

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"Right now percentage discounts are the only way to apply a discount to a specific item. "  Says Chad

 

If you mean by "itemized discounts" putting a discount that adheres to a specific item, then I get that.  But in current case you are applying fixed $ discounts in a prorated method over all of multiple items in the list, which  completely throws off the taxes.  BAD LOGIC. BUG.  In this scenario, the computer cannot know which of the two items to apply the $10 fixed discount, so evidently some brilliant programmer decided to prorate it over all the items.   That simply does not make sense. If I list an item, and need to discount that particular item, that doesn't mean all the other items should be discounted too, nor that all the other taxable items should be taxed at the discounted rate.

 

Item 1   $10 No Tax

Item 2  $10 Taxable @7%

 

Subtotal $20

Tax $.70

Total   20.70    CORRECT

 

Now add Discount $10, which will prorate over both items.

 

Subtotal $10

Tax $.35      WRONG

Total 10.35    WRONG

 

I am using the Web-based Dashboard to do these calculations. I haven't checked the app or POS.

 

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@Chad 

 

Found similar problem.  Fixed $ discount is prorating, which means its a flat out bug or poor programming IMHO. 

 

I have this scenario:

 

$30   Nontaxable

$20 Taxable @ 8.25%

$40  NonTaxable

 

Discount1  $30

Subtotal   $60

 

Tax $20.00 * .0825 = $1.65

Total 61.65

 

I had to discount due to service problem, so I added another discount:

Discount $40

 

New Subtotal $20

New Tax  $0.37!!   WRONG

New Total 20.37!!!!   WRONG

 

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