Rounding method examples
This article provides examples of tax calculations using the rounding method for a subscription with two taxable products.
A subscription has been created with the following information:
Subscription start date: 5/1/2011
Two Products:
Product 1: 1 unit - $197.00/unit, taxable
Product 2: 1 unit - $49.00/unit, taxable
Tax rate: 0.0825%
The following table lists the information about tax calculation using the rounding method.
| Product Name | Product Price | Quantity | Line Subtotal | Tax | Line Total |
|---|---|---|---|---|---|
| Product 1 | $197.00 | 1 | $197.00 | $16.25 | $213.25 |
| Product 2 | $49.00 | 1 | $49.00 | $4.04 | $53.04 |
| Subtotal | $246.00 | ||||
| Tax | $20.29 | ||||
| Total | $266.29 |
Calculations:
Line 1 tax = $197.00 * 0.0825 = $16.2525 (rounded to $16.25)
Line 2 tax = $49.00 * 0.0825 = $4.0425 (rounded to $4.04)
Total tax = $16.25 + $4.04 = $20.29