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Not sure what you mean.
If there is no settlement discount and if the net amount is 100 and sales tax is 20%, gross invoice is 120.
If there is a 5% settlement discount, the invoice is then:
Net 100 + 20 x 95% = 119 gross. It is assumed when calculating the sales tax that the settlement discount will be taken. If the discount is taken, the amount paid will then be 95 + 19 = 114.
hi tutor, i am new to FA1 and i am not so clear with the concept of sales tax. Could you please explain sales tax from the beginning? any help is appreciated. : )
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