- 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.
- Clio Manage
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.
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)