Tax calculations

How to create a new product with a tax rate

In this example, let's add a new item with a 8.25% tax rate.

Go to "Create new item" and enter the following attributes:
Name: "Example Product"
Price: 100
Tax: 0.0825
Click on "Save"

A purchase of 1 unit of Example Product is calculated as follows:

Subtotal without tax = $100
Tax: $100 x 0.0825 = $8.25
Total: $100 + $8.25 = $108.25

How to add a product with a tax rate to the invoice

Create a new invoice by going to "Create new invoice" (note down the new invoice number)
Go to "Add items to invoice" and select the new invoice created in step 1
Scroll down to transaction table, type "Example Product" in the first entry, select "Example Product"
If you have multiple products with the same name, please review price and tax rate details to make sure you have the correct selection
"Product Name", "Unit Price" and "Tax Rate" will be auto-populated based on information you entered when creating the item
Enter purchase "Quantity". For this example, let's enter a quantity of 2.
Review calculated subtotal, tax and total

A purchase of 2 units of Example Product is calculated as follows:

Subtotal without tax: $100 x 2 = $200
Tax: ($100 x 0.0825) x 2 = $16.50
Total: $200 + $16.50 = $216.50