KCS - Taxes are not showing up on my invoice correctly

Issue:

  • An invoice is generated with a dollar amount discount to the whole invoice as well as taxes to some line items. The tax is not what it is expected to be. It is (likely) higher.

Environment:

  • Clio Web App
  • Billing

Additional Information:

Discounts will apply to an invoice first, and then taxes will to the total discounted amount. 

Cause:

  • The discount will first apply to all the line items in a proportionate amount. The taxes will then be applied to the line items that have been selected to have tax with the new discounted total. If the tax is not what you expect it to be, it may be due to the fact that the discount has applied to all line items, but the tax was applied to only some. As such, the tax would likely be higher as the line items would not have the entirety of the discount. This is only the case when the discount is applied to the entire invoice and is a dollar amount discount instead of a percentage. This is a common issue when the services are taxed, but not expenses. The discount will apply equally across both services and expenses, and so the services total may be higher than intended.

 

  • The Bill has taxes applied to some Service or Expense Entries, and the client is calculating taxes for the total due on the Bill. 

Resolution:

  • Add in Line Item discounts instead of a whole invoice discount
  • Apply a percent discount instead of a dollar amount discount
  • Determine which items are being taxed, and calculate taxes for those items only 

 

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