Example 2: Sales Order in which the Taxed Unit Price is Entered by the User

In this example, the tax rate is 7.3% and the transaction quantity is 7.

If you enter a sales order with the taxed unit price of 15.3, the system completes the following steps:

  1. Uses the existing tax calculation logic to calculate the unit price and unit tax amount:

    • Unit price = 14.2591

    • Unit tax amount = 1.0409

  2. Calculates the taxed extended price by multiplying the taxed unit price by the quantity: Taxed extended price = 107.10

  3. Uses the existing tax calculation logic to calculate the extended price and extended tax amount:

    • Extended price = 99.81

    • Extended tax amount = 7.29