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2.39. Why is my tax not correct when using a custom discount?

When I enter a custom discount into the discount area of the
estimate screen estimate does not adjust the tax based on the new after discount subtotal. Why is this happening and how can I correct it?

EstiMate is working as designed. When entering a custom discount EstiMate will figure the tax on the original subtotal not the after discount amount. This is due to the fact that 1. On any given quote the possibility exists to have both taxed and non-taxed items and 2. There is no way when entering a custom discount for EstiMate to know exactly *what* is being discounted on the quote. Hence, to be on the safe side EstiMate does its tax calculation on the original subtotal.

If this logic will not work for your application, then consider these options:

1. Create a new free form line item on your quote for the discount. Put in the amount of the discount as a negative dollar figure and be sure to keep the tax box checked. In this way EstiMate will subtract the discount figure and the appropriate amount of tax.

2. Figure out what percentage of the total quote the discount is and create a new discount in the discounts database reflecting that percentage, then choose that from the discounts dropdown on your quote and EstiMate will adjust the tax accordingly.