Examples: Calculation Rules for Taxes

The system calculates gross and discount amounts using the tax rules that you set up. Each of these examples uses a different combination of rules to calculate:

• Tax on gross including or excluding the discount amount

• Discount on gross including or excluding the tax amount

The examples use these amounts:

• Taxable amount: 1,000

• Gross amount: Varies

• Tax rate: 10 percent

• Tax amount: 100

• Discount: 1 percent