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Why is the Invoice Displaying an Incorrect Tax-Owing Amount?

Question:

  • When a line item is chosen with no tax applied to it, but the other line items have the tax applied, the taxed amount seems to be calculated incorrectly.

Environment:

  • Clio Manage

Additional Information:

  • N/A

Answer:

Tax is calculated on the total amount (time*rate) of the line items that have tax selected to be applied individually to them. That is, tax is not calculated based on the 'Sub-total' showing on the bill, but rather on the sub-total of the line items that have tax applied to them.

Eg: 

Edit_invoice__1971___Clio_2021-04-08_11-24-13.png_2021-04-20_17-01-30.png

In the invoice above, the sub-total showing on the bill is 2070.

However, as highlighted in the image, tax is only applied to 5 of the line items (Excludes the $12.50 line item. The taxable amount therefore, is $2,057.50  [ie, 2070-12.50],and not $ 2070.00

Seeing the sub-total of 2070 on the invoice (see below), and the tax-rate of 13% under it, might lead the reader to assume the taxed amount should then be (13% 2070 = $269.1), which is not the case, as the taxable amount is $2,057.50, and the taxed amount is therefore (13% 2057.50 = $267.48)

Invoice__1971___Clio_2021-04-08_11-23-14.png_2021-04-20_17-05-24.png

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