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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

 

 

 

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