Example 2

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 (Excluding Tax) are activated.

Formula	Calculation
Discount Formula	Taxable Amount x Discount Percent = Discount Available 1,000 x.01 = 10.00
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