How Sales Tax is calculated on Quotes

Tax amounts in systems that calculate tax on a per total basis may differ slightly from Quotient, which calculates tax on a per item basis.

In Quotient:

  • Each Price Item can have its own Sales Tax rate. The Sales Tax is therefore calculated and rounded separately, before calculating the Quote Total.
  • Sales Tax Rates can be 4 decimal places, but after calculating the Price and Quantity the amount is rounded to 2 decimal places on the Price Item.

Sales Tax rounding examples:

Two items, each with a Price of 35.35, a Quantity of 1, and Sales Tax of 10.00%:

The tax amount on each item is 3.535, which rounds to 3.54. The tax from each item is added together, for a total tax of 7.08. If this were calculated on a per total basis the tax total would have been 7.07.

One item, with a Price of 10.00, a Quantity of 1, and Sales Tax of 8.875%:

10.00 x 1 x 8.875% = 0.8875 which is then rounded to two decimal places for a tax amount of 0.89.