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Tax rate calculation does not consider discount when applied to formula
Tax rate calculation does not consider discount when applied to formula
ID:
Backlog
Published on 8/1/2017
Last update on 12/22/2022

Summary

Pricing is not considering a promotion with discount when we create a tax rate using the formula which sees the total Value of the order.

AN example of how this looks like: Tax rate configured as ((total + shipping) * 0.1)

Subtotal100,00
Discount10,00
Shipping20,00
Tax12,00
Total122,00

An example of how it's supposed to look like: Tax rate configured as ((total + shipping) * 0.1)

Subtotal100,00
Discount10,00
Shipping20,00
Tax11,00
Total121,00

The example showing how it should look like shows that the Tax rate formula calculated the total value by taking into account the $10 discount.

Simulation

Create any promotion and a tax rate following the formula ((total + shipping) * 0.1). Simulate a product in the cart with this promotion and tax rate. The value of the tax will be calculated based on the total value, without taking the discount into account.

Workaround

There is no workaround.

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