Tax Calculation Methods

Tax Calculation Methods

OrderLogix allows for three different tax calculation methods within the standard order imports: Order Level Item Level and Order Total.

Setting the tax calculation method incorrectly on the import may result in a penny (0.01)  or two difference when OrderLogix validates order values.

Order Level: Order Level tax calculation means that the tax rate is applied to the sum of the unit prices for the items on the order then the tax amount is rounded to the nearest penny. (this is the default for OLX order imports)

Item Level: Item Level calculation is done by applying the tax rate to each item and rounding the tax amount to the nearest penny and then adding all of the item's tax amounts together.

Order Total: When Total level calculation is used no rounding on tax is done until rounding of ORDER_TOTAL

Tax calculation method can be set using the import configuration option titled TAX CALCULATION MODE and selecting either Order Level Item Level or Total Level from the drop down for flat file imports or it can be sent in the setting portion of XML called TAX_CALCULATION_METHOD as either ORDER ITEM or TOTAL for API imports.

If you still have questions regarding the material covered in this article please contact OrderLogix Customer Care for assistance. Thank you!