Applying discounts for items that have included taxes

[bluemule]

I've discovered what I consider a BUG with how discounts are applied at the POS

Our sales tax is set up to be included in the item price that's entered in the item details.  This was done for convenience, not having to deal with coins on cash sales.  EX, say item price in square shows $25 and the tax rate is 6.75% then the real price is $23.42.  The problem comes when you set up your discounts, lets say 20% on the sale, the POS takes the 20% on the price including the tax, so in reality you're giving a 21% discount.  In the discount setup it doesn't allow for the condition of included tax.  My workaround is to set the actual discount percentage at the desired discount divided by one plus the tax rate.  For example above: 20%/1.0675=18.74%.  You still name the Discount 20% but you have the 18.74% for the actual calculation that's made at the POS.

[JJ_]

Hello there @bluemule 👋

From what I am understanding your prices include the tax and and tax formula is Sales tax X Item price = total price. With that clarification you adding a discount to the price of the item it would actually reduce the price as well. Taxes will be affected any time you update (increase or reduce) the price of an item. So the discount will do its job on reducing the sale price which in consequence will reduce the tax you had already included. I hope this information is helpful and that I understood you correctly.

Feel free to correct me if I'm wrong and please help me understand better.