How Do I Change The Way Discounts And Taxes Are Applied?
Question:
How do I change the way discounts and taxes are applied?
Response:
In Settings / Sales Tax - Edit / Discount Distribution. This field determines how discounts that apply after the Order Subtotal but before Sales Tax (e.g. Customer Discounts, Coupon Discounts, Order Discounts, etc.) are distributed to the various Ship To Addresses in an order for the purpose of determining sales tax. The options are: • Even -- Discounts are distributed evenly across all Ship To Addresses. • Proportional-Product -- Discounts are distributed in proportion to the product total of each Ship To Address. • Proportional-Taxable -- Discounts are distributed in proportion to the taxable product total of each Ship To Address. Nontaxable products (including all products shipped to nontaxable states) are not a factor in discount distribution. • None -- Discounts are not considered in the calculation of sales tax (i.e. discounts are nontaxable).
Notes: • If the Multiple Ship To option (Settings/Boolean Options) is off, the Even, Proportional-Product, and Proportional-Taxable options are, in effect, identical. • With the None option, discounts are distributed in proportion to the product total of each Ship To Address for the purpose of calculating Non-Taxable Totals in the Sales Tax Report (Orders/Report).
