question about taxes + promos

[Patrick-4]

Let's say there is a promo rule like this: if cart > $50, then $20 off
cart.  Let's say the promo runs in a state with 5% tax, but no tax on
food.
The order is $30 worth of taxable items and $20 of non-taxable food.
What's the proper amount of sales tax?

Do you take the $20 off the taxable goods and then only have $10 worth
of taxable goods?
Do you calculate taxes as if it was a $50 order then take $20 off?

This is really confusing for me so I really appreciate your comments.

[BJ Freeman]

each product has a taxable flag
currently the code looks for this flag and then does calculation based
on the price in the cart.
it sums all the items that are taxable then does the tax calcualtion.
the Tax calcuation is based on geocode

Patrick sent the following on 6/15/2010 12:19 PM:


=========================
BJ Freeman
http://bjfreeman.elance.com
Strategic Power Office with Supplier Automation  <http://www.businessesnetwork.com/automation/viewforum.php?f=52>
Specialtymarket.com  <http://www.specialtymarket.com/>

Systems Integrator-- Glad to Assist

Chat  Y! messenger: bjfr33man
Linkedin
<http://www.linkedin.com/profile?viewProfile=&key=1237480&locale=en_US&trk=tab_pro>

> Let's say there is a promo rule like this: if cart>  $50, then $20 off
> cart.  Let's say the promo runs in a state with 5% tax, but no tax on
> food.
> The order is $30 worth of taxable items and $20 of non-taxable food.
> What's the proper amount of sales tax?
>
> Do you take the $20 off the taxable goods and then only have $10 worth
> of taxable goods?
> Do you calculate taxes as if it was a $50 order then take $20 off?
>
> This is really confusing for me so I really appreciate your comments.
>

[Scott Gray-2]

> it sums all the items that are taxable then does the tax calcualtion.

That is completely wrong, I know you like to respond to every question on the user list but please try and avoid taking guesses (or at least make it clear that you aren't sure).

Tax is calculated on each order item individually and then summed up by tax authority/geo when being posted to the ledger.

Regards
Scott

On 16/06/2010, at 8:23 AM, BJ Freeman wrote:

> each product has a taxable flag
> currently the code looks for this flag and then does calculation based on the price in the cart.
> it sums all the items that are taxable then does the tax calcualtion.
> the Tax calcuation is based on geocode
>
> Patrick sent the following on 6/15/2010 12:19 PM:
>
>
> =========================
> BJ Freeman
> http://bjfreeman.elance.com
> Strategic Power Office with Supplier Automation  <http://www.businessesnetwork.com/automation/viewforum.php?f=52>
> Specialtymarket.com  <http://www.specialtymarket.com/>
>
> Systems Integrator-- Glad to Assist
>
> Chat  Y! messenger: bjfr33man
> Linkedin <http://www.linkedin.com/profile?viewProfile=&key=1237480&locale=en_US&trk=tab_pro>
>
>> Let's say there is a promo rule like this: if cart>  $50, then $20 off
>> cart.  Let's say the promo runs in a state with 5% tax, but no tax on
>> food.
>> The order is $30 worth of taxable items and $20 of non-taxable food.
>> What's the proper amount of sales tax?
>>
>> Do you take the $20 off the taxable goods and then only have $10 worth
>> of taxable goods?
>> Do you calculate taxes as if it was a $50 order then take $20 off?
>>
>> This is really confusing for me so I really appreciate your comments.
>>

[Jacques Le Roux]

I'd have said "That's not totally accurate" ;o)

Jacques

Scott Gray wrote:

>> it sums all the items that are taxable then does the tax calcualtion.
>
> That is completely wrong, I know you like to respond to every question on the user list but please try and avoid taking guesses
> (or at least make it clear that you aren't sure).
>
> Tax is calculated on each order item individually and then summed up by tax authority/geo when being posted to the ledger.
>
> Regards
> Scott
>
> On 16/06/2010, at 8:23 AM, BJ Freeman wrote:
>
>> each product has a taxable flag
>> currently the code looks for this flag and then does calculation based on the price in the cart.
>> it sums all the items that are taxable then does the tax calcualtion.
>> the Tax calcuation is based on geocode
>>
>> Patrick sent the following on 6/15/2010 12:19 PM:
>>
>>
>> =========================
>> BJ Freeman
>> http://bjfreeman.elance.com
>> Strategic Power Office with Supplier Automation  <http://www.businessesnetwork.com/automation/viewforum.php?f=52>
>> Specialtymarket.com  <http://www.specialtymarket.com/>
>>
>> Systems Integrator-- Glad to Assist
>>
>> Chat  Y! messenger: bjfr33man
>> Linkedin <http://www.linkedin.com/profile?viewProfile=&key=1237480&locale=en_US&trk=tab_pro>
>>
>>> Let's say there is a promo rule like this: if cart>  $50, then $20 off
>>> cart.  Let's say the promo runs in a state with 5% tax, but no tax on
>>> food.
>>> The order is $30 worth of taxable items and $20 of non-taxable food.
>>> What's the proper amount of sales tax?
>>>
>>> Do you take the $20 off the taxable goods and then only have $10 worth
>>> of taxable goods?
>>> Do you calculate taxes as if it was a $50 order then take $20 off?
>>>
>>> This is really confusing for me so I really appreciate your comments.

[Scott Gray-2]

But that would imply that it was somewhat accurate, it wasn't.  The other parts were not totally accurate but close enough that I didn't bother mentioning them.

Regards
Scott

On 16/06/2010, at 5:48 PM, Jacques Le Roux wrote:

> I'd have said "That's not totally accurate" ;o)
>
> Jacques
>
> Scott Gray wrote:
>>> it sums all the items that are taxable then does the tax calcualtion.
>> That is completely wrong, I know you like to respond to every question on the user list but please try and avoid taking guesses
>> (or at least make it clear that you aren't sure). Tax is calculated on each order item individually and then summed up by tax authority/geo when being posted to the ledger.
>> Regards
>> Scott
>> On 16/06/2010, at 8:23 AM, BJ Freeman wrote:
>>> each product has a taxable flag
>>> currently the code looks for this flag and then does calculation based on the price in the cart.
>>> it sums all the items that are taxable then does the tax calcualtion.
>>> the Tax calcuation is based on geocode
>>> Patrick sent the following on 6/15/2010 12:19 PM:
>>> =========================
>>> BJ Freeman
>>> http://bjfreeman.elance.com
>>> Strategic Power Office with Supplier Automation  <http://www.businessesnetwork.com/automation/viewforum.php?f=52>
>>> Specialtymarket.com  <http://www.specialtymarket.com/>
>>> Systems Integrator-- Glad to Assist
>>> Chat  Y! messenger: bjfr33man
>>> Linkedin <http://www.linkedin.com/profile?viewProfile=&key=1237480&locale=en_US&trk=tab_pro>
>>>> Let's say there is a promo rule like this: if cart>  $50, then $20 off
>>>> cart.  Let's say the promo runs in a state with 5% tax, but no tax on
>>>> food.
>>>> The order is $30 worth of taxable items and $20 of non-taxable food.
>>>> What's the proper amount of sales tax?
>>>> Do you take the $20 off the taxable goods and then only have $10 worth
>>>> of taxable goods?
>>>> Do you calculate taxes as if it was a $50 order then take $20 off?
>>>> This is really confusing for me so I really appreciate your comments.
>