Reductions and included tax.

[Dale Harris]

If you have an "amount" reduction the program will currently reduce the price of the item before tax no matter if the tax is added or included.

This means that if you use added tax and have a 5.00 item and reduce it by 1.00 with 5% tax that the sale will now be...
<pre> Before 1.00 reduction...

PRICE 5.00
TAX .25
TOTAL 5.25

After 1.00 reduction...

PRICE 4.00
TAX .20
TOTAL 4.20</pre>

However if you are using included tax then this will happen...

<pre> Before 1.00 reduction...

PRICE 4.76
TAX .24
TOTAL 5.00

After 1.00 reduction...

PRICE 3.76
TAX .19
TOTAL 3.95</pre>

As you can see in both cases the price was reduced by 1.00.

However I have received several emails from people using included tax telling me that that want the total reduced not the price. So that it would come out this way...

<pre> Before 1.00 reduction...

PRICE 4.76
TAX .24
TOTAL 5.00

After 1.00 reduction...

PRICE 3.81
TAX .19
TOTAL 4.00</pre>

So let's have a poll for included tax users. Reduce the price or reduce the total?

[barry_hart2005]

yes,

if something was previously $5.00 and has a reduction of $1.00, then the total price should be $4.00.

The tax is then calculated from the $4.00

The way tax is calculated in Australia is to calculate all reductions and discounts FIRST and then the tax is calculated FROM the new discounted amount.

barry hart.

[JF Mous]

Reducing the total seems the most logical to me.
Here in Belgium, most registers work like this:
They ring up all items with INCLUDED tax, with reductons being negaive items.
When closing the sale, the register totals the sales amount by tax rate and extracts the tax from it.
so it works the other way around: the included amount is fixed and the rest are calculated values.
Some registers may even extract the at close (for the total turnover at once), instead of for each sale.