Tax should be applied for the original amount, not for the discount

[merlinrajesh]

Dear OM Gurus,

We have a requirement where tax to be applied for the original amount and not for the discount amount.

Eg. I have a sale order for 1000Pounds. My discount is 10%. My sales tax is 15%. Now I want the tax to be applied for 1000pounds and not for 900pounds.

How to do this?

Thanks & Regards
Merlin Rajesh

[siva sankar]

Hi,
In the Payables Options window, --> Invoice Tax Tab,
Calculation Level. If you enable the Use Automatic Tax Calculation option, select the level at which you want Payables to automatically calculate sales tax. This value defaults to new suppliers you enter.
Header. Automatically create tax distributions based on the Invoice Amount and Tax Code in the Invoices window:
Header Level, Tax Code and Line Level.


If the Exclude Tax From Discount Calculation option is enabled and
changes have been made to the tax amounts and if the invoice is not
fully paid, then the Invoice Validation recreates the scheduled payments
based on the new discountable amount

The Exclude Tax From Discount Calculation option you
specify in the Payables Options window controls

Set the "Exclude tax from discount" option set to "Yes" in Payables Options

U can try by giving the tax Code @ line level

Check the same and let us know whether this works or not.

Thanks,
Siva Sankar

[merlinrajesh]

Dear Siva,

Thanks for your detail reply....But I am asking about Order Management and not Purchasing...

Thanks & Regards
Merlin Rajesh