sales tax is not calculating correctly when discount is applied to taxed item

[dotdotsmiledp]

I created and invoice for 1 items ($34). Sales tax is applicable on the item. I then added a 100% discount for the item.  So the total should reflect the shipping charge ($4) only. 

However, it is adding a .25 charge and I have no idea where that is coming from. It only happens if I add the discount on a taxed item so it must be coming from the tax code.  

This is clearly a bug and should be looked into as it is resulting in incorrect amounts to be displayed on the invoice. 

item plus tax = correctitem + shipping + tax = correctitem + shipping + discount = NOT correctitem + discount, no tax or ship = correct

[HeatherM]

I'm not 100% sure of this, but it appears your shipping is being charged 6.25% sales tax.

Is it possible your shipping is marked as taxable?

[Joe]

This was my thought exactly @HeatherM! 

You should be able to toggle off your 'shipping' line item from having tax applied. You can edit this from the Item screen. Let me know if this works, @dotdotsmiledp!

[juleswhall]

I have Shipping set-up as a line item to add to my e-commerce invoices. In my state, there is no sales tax charged on Shipping, so I have the item set-up with the Taxes option unchecked.

I also offer a Buy 3/Get 1 Free discount on my items. When the invoice contains just the 4 items and the Shipping item, everything is correct. However, when I add the Discount to the invoice, the tax amount is incorrect.

It's usually only by 2-3 cents. If tax were being charged on the shipping, it would be $0.21 so it's not as if the system is adding the full amount of tax for the Shipping. If I remove the Shipping line item from the invoice and leave the B3/G1 Discount in place, the tax amount corrects itself.

Any idea how I can get the invoice to correctly reflect the Sales Tax on the Buy 3/Get 1 Free total without adding more when I include Shipping?

[nika]

Hi @juleswhall- Thanks for your post.

@dotdotsmiledp Were you by chance ever able to figure out what was happening with this issue? If you have any info, it would be great to hear from you so you could help both @juleswhall and myself out!