Overview

This article explains how to correctly apply taxes and discounts to transactions such as Sales Orders and Invoice

Applying Taxes

Step-by-step:

1. Create or edit a transaction (Invoice or Sales Order)
2. Add an item
3. Locate the Tax column
4. Select the appropriate tax

Types of Taxes:

• Tax Exclusive → added on top of item price
• Tax Inclusive → included in item price

Configuring Taxes

1. Go to Settings → Taxes
2. Create or edit tax rates
3. Assign taxes to items if needed

Applying Discounts

Option 1: Line Item Discount

• Apply discount to a specific item

Option 2: Transaction Level Discount

1. Scroll to bottom of transaction
2. Click Add Discount
3. Choose:
   • Percentage (%)
   • Fixed amount

Common Issues

• Taxes not appearing → check item tax configuration
• Incorrect totals → verify if tax is inclusive or exclusive
• Discount applied incorrectly → check if it's per item or total

Best Practices

• Standardize tax usage across all items
• Use transaction-level discounts for promotions
• Always review totals before saving