Tax on Discounted Items (RMS)

Tax wouldn't be charged on an item discounted 100%. Since the tax is a % of the sale amount, and the sale amount is $0, then there is no tax. Craig

Julie,

We handle that situation by using a coupon tender type. We already have a tender type setup for coupon, so when you are done ringing up all the items, hit F12 to tender the sale. Enter the price of the item you want to discount

100% as a the value for coupon in the tender screen. Now the balance due will include tax on the 'free' item. If you want a complete audit trail you would need something for the cashier to put in the drawer to serve as the coupon. We write the amount and transaction number on it. If it is an ongoing promotion we print a simple coupon to use for it. This way a compete check-out can be performed to prevent unauthorized discounting.

Marc

I must have misunderstood. If what you are doing is using a coupon, then Marc's solution is what you want to do, you need to setup a tender type for taking coupons. It's the way we do it also. But, if you are discounting the retail price 100%, basically giving product away for a promotion or something, then there would be no tax involved. If you want a way to track product you give away(for promotions or whatever) you can setup a non-inventory item and enter the price as a negative to offset the price of the item you're giving away. You can configure the item to enter price at POS and put a minus sign in front of it. Then you can keep track of it by reporting on the non-inventory item. Craig