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How to apply a discount and retain full tax amount

Problem:

 

Some states require applying the full tax amount before any discount coupons are applied to an Invoice, in this scenario tax is 7.75%.

Versions Affected:

Manager/Manager Plus, Shopkey Service Writer/Management (all versions).
 

In our management program, when discounts are applied it will reduce the total amount before tax, so the tax is also reduced. So, if you applied $10 discount on parts, it reduces the total of the part to $90 so the tax will only be $6.98.

 

Solution:

Some states consider discount coupons to have face value. So some states require charging tax on the grand total first, before any discount coupon is applied. To make this happen, you will need to apply the discount as a payment.

1. Go to setup, then standard tables income/payment types tab, select payment types, and click add:

 
2. The account class information screen will open up, select cash. On account description type in discount coupon (or any verbiage the customer wants to use) and assign a unique GL Code, click ok.

 

3. Now you have a payment type, discount coupon.

 

 

4. To apply the discount coupon payment to the invoice, go to the option button at the bottom of the order screen and choose apply payments.

 

 

 

5. On the apply payment window, choose discount coupon under payment type then enter the discount value (in dollars), click pay.

6. After clicking on pay, a confirmation window will open and ask you if you want to post additional payments, you should be choosing "no”. By choosing "no”, you are essentially telling the program the customer is not going to owe this money. The $10 will be treated as a negative amount of money being applied to their account, which in turn will reduce their Invoice by $10.

7. Perform a print to screen of the invoice and you will notice a discount coupon payment is placed in the invoice for $10. The tax is $7.75, which is based upon the original total of the invoice of $100.00. The customer will pay $97.75 ($90 for the part and $7.75 for the tax).

 

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