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Do Discounts or Taxes Get Applied First on an Invoice?


  • Order of operations for discounts and taxes on an invoice.
  • Credit notes apply before taxes?


  • Clio Manage

Additional Information:

  • Discounts are applied proportionally across line items and tax is applied to each line item after the discount is taken.


Discounts get applied before Taxes are calculated. Credit Notes are applied last, as they are considered a type of "payment", albeit a non-revenue-generating payment.

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