Example 1
This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Including Discount) and Calculate Discount on Gross (Including Tax) are activated.
Formula |
Calculation |
---|---|
Discount Formula |
(Taxable Amount + Tax Amount) x Discount Percent = Discount Available (1,000 + 100) x.01 = 11.00 |
Gross Formula |
Taxable Amount + Tax Amount = Gross Amount 1,000 + 100 = 1,100 |
Taxable Formula |
Gross Amount / (1 + Tax Rate) = Taxable Amount 1,100 / 1.1 = 1,000 |