Do Discounts or Taxes Get Applied First on an Invoice?

Objective:

• Order of operations for discounts and taxes on an invoice.

Environment:

• Clio Web App

Additional Information:

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

Answer:

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.