Question: Tax Calculation Error

Tax Calculation Error

1. I am using three digits after decimal point. If I say my product price is 0.950 & product tax is 5% or 0.050 The bill shows total amount is 0.997 2. If I select decimals as 3, it shows fo

CM

Copper Machine

Asked
1. I am using three digits after decimal point. If I say my product price is 0.950 & product tax is 5% or 0.050 The bill shows total amount is 0.997
2. If I select decimals as 3, it shows four decimals in the product.

I am attaching the screenshots
  • MS

    Mian Saleem

    Answered
    Hello,

    The tax is calculated as following

    ```
    Exclusive Tax = (price * tax rate / 100) => (100 * 5 / 100) = `5`
    so product nett price 100 & unit price will be 105

    Inclusive Tax = (price * tax rate / (100 + tax rate)) => (100 * 5 / (100 + 5)) = `4.76`
    so product nett price 95.24 & unit price will be 100
    ```

    The `Product Tax` input should be a percentage number. If you want to apply 5% tax then you should input 5 not 0.05

    The Order Tax is secondary tax that is always applied as exclusive tax.

    I will check the total payable it should be 0.998 not 0.997 :(

    Thank you
  • CM

    Copper Machine

    Answered
    I tried putting 5...It didn't work. I will go through it one more time. Please check my second query ....If I select decimals as 3, it shows four decimals in the product. I have already attached the screenshot in my previous query....
  • MS

    Mian Saleem

    Answered
    Hello,

    All decimal inputs are saved with 4 decimals and the input values are not formatted.

    Thank you
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