Home > Taxable Total Reflects Trade Discount? (Y/N)

Taxable Total Reflects Trade Discount? (Y/N)

(ID# 1729) Set this Point-of-Sale (POS) option in Options Configuration to Yes if you want to define the Taxable Sales on the POS Totals screen to be the Taxable Sales minus the transaction's trade discount. Otherwise set this option to No to define the Taxable Sales to be the Taxable Sales before the Trade Discount is subtracted.

Example

The tax rate is 10% and all items on the transaction are both taxable and trade discountable.

When this option is set to Yes, a $20.00 transaction with a $4.00 trade discount will display:
Taxable 16.00
Trade Discount 4.00
Tax 1.60

When this option is set to No, a $20.00 transaction with a $4.00 trade discount will display:
Taxable 20.00
Trade Discount 4.00
Tax 1.60

The Tax amount on the POS Totals screen will always be the tax for the taxable sales less the trade discount. This option applies to not only customer-based trade discount and manual trade discount but also to Type 7 Dynamic Promotions where the benefit is given as a Trade Discount (not a credit SKU).