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Do Discounts or Taxes Get Applied First on an Invoice?

Objective:

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

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.

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