10.3 and 3.1 How to calculate Item Price when Tax is Included for Total Price option
Problem
We want to change over to the Total Price option on our fees but are struggling with how to determine the cost of the item, itself. For example: if the Total Price is 100 and we have 5% tax, then the item price should be $95, but that isn't working out. Is there an easy way to determine item price?
Solution
Yes. To calculate item price where sales tax is included, divide the selling price by 1.00 + your tax rate.
For Example: Your Total Price is $100.00. Your linked tax table is set to 5%. Using this calculation: 100.00/1.05=$95.24. Conversely, 95.24 + 5% = 100.00
Note: The Total Price Option should NOT be enabled if your department uses the Florida Tax Option. In 3.1, Tax Option is determined by Module in Module Management Module Update. In 10.3 and previous, Tax Option is determined by Tax Table in Tax Tables Maintenance.