Order discount application for tax calculation can be done in two ways in Primaseller:
- Applying tax after deducting order discount
- Applying tax before deducting order discount
You can choose one of these settings by following this navigation:
- Settings from the left panel
- Payment, Taxes, Invoicing > Tax Configuration > Order Discount Application
If the option selected is “Before deducting order discount” then here’s how the tax and discount configuration works:
- Apply Item Discount
- Calculate Tax Per Item
- Find Sub-Total of all such items
- Deduct Order Discount to arrive at Grand Total
However, if the option is set to “After deducting order discount” then the behaviour is as follows:
- Take Item Selling Price
- Apply Item Discount
- Take Order Discount and distribute across items on a pro-rate basis
- Calculate Tax Per Item after applying Item Discount as well as distributed Order Discount
- Find Sub-Total of all such items and arrive at Grand Total