Example 4

This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Excluding Discount) and Calculate Discount on Gross (Excluding Tax) are activated.

Formula	Calculation
Discount Formula	(Taxable Amount x Discount Percent) / (1 - Discount Percent) = Discount Available (1,000 x.01) / (1 -.01) = 10.10
Gross Formula	Taxable Amount + Tax Amount + Discount Amount = Gross Amount 1,000 + 100 + 10.10 = 1,110.10
Taxable Formula	Gross Amount - Tax Amount - Discount Amount = Taxable Amount 1,110.10 - 100 - 10.10 = 1,000