Navigation: Transactions > Purchases > Purchases Transactions > Tax Inclusive Amounts Include Tax Check box Once an account has been selected in Quote, Order or Bill, tick or un-tick Tax Inclusive will not affect the input data in the form field, only the Subtotal, Total Tax and Total will be adjusted accordingly. a.If this check-box is ticked Formula: Subtotal = Ship quantity * Price / (1+ Tax Rate) Sample Data: if Quantity is 1, price is 10 Tax is GST (10%) Subtotal = 1 * 10 / (1+10%) = 9.09 Tax = Quantity * price – subtotal = 0.91 b.If Check-box is un-ticked Subtotal = quantity * price Sample data:  if Quantity 1, price is 10, Tax is GST (10%) Subtotal = price * quantity = 1 * 10 = 10 Tax = subtotal * Tax rate = 10 * 10% = 1 Total = subtotal + tax = 10 + 1 = 11 c.If user input a quote with tax inclusive ticked, then un-tick the tax inclusive check-box after data inputting. Item 1, quantity 1, unit price 10, Tax is GST (10%) Subtotal = 1 * 10 (1 + 10%) = 9.09 Tax = quantity * price – subtotal = 0.91 Now, user un-ticks tax inclusive check-box. Unit price is still 10 Total = 10 * (1 + tax rate) = 10 * (1+10%) = 11. d.If user input a quote with tax inclusive ticked, then tick the tax inclusive check-box after data inputting. Item 1 quantity 1, unit price is 10, Tax GST 10% Subtotal = quantity * price Sample data:  if Quantity 1, price is 10, Tax is GST (10%) Then, user ticks tax inclusive check-box, Unit price 10 will not change, but the Subtotal = 1 * 10 (1+10%) = 9.09 Tax = quantity * price – subtotal = 0.91 Copyright © Q6 Cloud Accounting