Apply Tax After You Calculate a Discount

Apply tax after you calculate a discount on the item.

Create a discount list in the Pricing Administration work area, assign it to your item, then add it to a pricing strategy. For details about how to do this, see Manage Discount Lists.

At run time, Order Management calculates the discount first, and then applies the tax depending on your tax setup.

Assume you set up pricing so it calculates a 10% discount, and you set up tax to apply a 5% tax according to customer site. For details, see Apply Tax According to Customer Site.

Here's how Order Management prices the sales order.

Attribute	Value
Total List Price	2,500.00
Discount	250.00
Total Net Price	2,250.00
Shipping	0.00
Total Tax	112.50 112.50 is 5% of 2,250.
Total Credit	0.00
Pay Now	2362.50