Yes, this is true... It also depends on your state's laws. In order to *NOT* have the taxes be on the full amount, setup your discount as a Negative priced inventory item that is marked "taxable". This will cause the sales tax to be removed as well as the discount price.
why would i want to set it up as an inventory item ? If I am offering $5.00 discount I would think it would work the same as a 10% discount, especially since under the discount set-up it gives me the option of % or $. IF I choose % it does recalc the tax correctly.
On % discounts in all states no sales additional sales tax needs to be collected. On $ off discounts some states requre tax on full amount (before discount) others do not.
Inventory Items are usually used for coupons and I think that is why Scott suggested that as an alternative.
so if i am offering a special such as 1 large specialty pizza @ $2.00 off I would need to add every specialty pizza on my menu as a master item with the discounted price as well as with the regular price (since some specials are not offered for delivery) ? Wouldn't it be better to allow the user to select whether or not the sales tax should be adjusted ?
Bugsy wrote:so if i am offering a special such as 1 large specialty pizza @ $2.00 off I would need to add every specialty pizza on my menu as a master item with the discounted price as well as with the regular price (since some specials are not offered for delivery) ? Wouldn't it be better to allow the user to select whether or not the sales tax should be adjusted ?
No not at all. You would add a *NEW* master item called "$2.00 Off Specialty Pizza" and set it's price to -2.00 and make it "taxable". Ring up the "Normal" specialty pizza, and then ring up this negative $2.00 item which will in effect cause the price and tax to be correct.