TAX Calculation Error with Coupon/Unit Reduction feature.

[brucef2112]

Hey Dale,

There is an issue with sales that have a combination of non-taxable and taxable items and combined with the F9 "Coupon/Unit Reduction" feature. It causes a negative tax amount to be calculated. I've tried this with 6.39j through 640d1.

My tax configuration is add tax at end of sale. I have tax 1 set to 6% all other tax fields are zero. The F3 key "Discount" is set to 10%.

If all items in the sale are taxable, the "Coupon/Unit Reduction" works correctly. However if a sale has non-taxed item(s) and taxed item(s) and the "Coupon/Unit Reduction" is used then the tax calculations gets goofy.
This happens both with items set as tax free in the stock table or if tax is set to zero during the sale via the F7 key.

For sales with non-tax and taxed items;
I would expect the "Coupon/Unit Reduction" would be similar to the way the "All Above Reduced by 10%" and/or the F3 "Discount" function works as shown here.

The tax rate is 6 percent.
For the taxable $10 dollar dog the register takes 10% off.
This makes the taxable amount $9 dollars. Then an additional 10% is taken off the $9 dollars with the F3 key "Discount".
This makes the taxable amount $8.10. The tax on $8.10 is .49 cents.
So this is correct.

When the F9 "Coupon/Unit Reduction" is used with a combination of non-taxable and taxable items, the tax is not calculated correctly.

The $11 "Coupon Reduction" amount is removed only from the taxable $10 dog.
This make the taxable amount -$1 dollar.
Then with the F3 key "Discount", an additional 10% is taken off the -$1. This makes the taxable amount -$0.90.
The tax on -$0.90 is -$0.05 cents. I'm pretty sure for sales tax calculation this is not good.

I would expect the "Coupon/Unit Reduction" calculation should be as follows.
The "Coupon Reduction" amount is divided between all items in the sale.
This portion is removed from each of the taxable item(s). Tax is then calculated on that amount.
In this case above, half of the $11 dollars is $5.50. The $5.50 is subtracted from the $10 dollar dog. The taxable amount is now $4.50. Then an additional 10% is taken off by use of the F3 key "Discount". This make the taxable amount $4.05. The tax on $4.05 is $0.24 cents.

If the portion of the coupon reduction removed from a taxable item results in a negative price then that item is not included in the tax calculation (a zero tax amount for that item).

[brucef2112]

Dale,
I'm currently using 6.40 (I have no need for timers, timeclocks, theater seat and such).
Being a slow night at the house Ithought I'd DL ver 7.02 to give it a spin.
It seems the latest version continues to have the same TAXing problem that I raised conserns about previously.

My pos tax cofiguration is still the same. Tax added; Tax1 6%; All other tax set to zero.
1) Ring up a non-tax item. $100 dollars.
2) Use the F9 and use the coupon/unit reduction for a $1 dollar coupon/unit reduction. -$1.00
3) The POS removes the reduction amount plus tax for a non-taxable item?!??! TAX -$0.06
Thereby giving the customer an additional 6% off the sale. Total of $98.94 instead of $99.00.

And as previously posted, the taxing gets even uglier when mixing taxable and non-taxable items with a F9 reduction.

[daleadmin]

brucef2112,

When you select "Coupon / unit reduction" from the [F8] Reduction feature it will display...

Code: Select all

Enter amount of coupon / reduction. _________

                          Tax rate      6.000%

So as you can see it is supposed to add 6% tax to the reduction and since a reduction is a negative amount the tax on the reduction is also negative. The trick is to remove the tax. And on the bottom line of the screen is the handy-dandy [F7] Change tax feature. Press [F7] before you press [ENTER] on the amout of the "Coupon / unit reduction"

A "Coupon / unit reduction" is treated as any other item in the sale, it is either taxable at any of the available tax rates or it is not taxable. It makes no difference if the other items in the sale are taxable or not. The same thing appies if a whole sale discount is applied to the "Coupon / unit reduction". If you discount the "Coupon / unit reduction" then there is less of the "Coupon / unit reduction" to tax so the tax on the "Coupon / unit reduction" is also discounted.

Well since I am writing this late at night I hope that this still makes sense in the morning for both of us.

Dale

[brucef2112]

I don't know how you do it, dale.
Now every time I use "Coupon / unit reduction" I look down at the bottom of the screen and that [F7] is there taunting me to toggle the tax! Its crazy! Even if I try a quick glance away and back; it keeps showing up!

thx...