How Orders are Calculated - Example

The example below shows the steps for calculating an order.

  • This example assumes specific tax rates and options.
    • Actual rates, and the decision as to whether or not certain charges are taxable, vary by shop, state, region, etc.

    • Tax rates and schedules are set up and changed in the Company Setup windows.

 

How orders are calculated:

1. On the Job window, all line items are added to determine the Subtotal.
Total of included parts charges: 125.00  
Total of included labor charges: 225.00  
Total of included sublet charges: 0.00  
Total of included miscellaneous charges: 0.00  
------------ ------ ------
Subtotal:   350.00
2. If selected, charges for Hazmat and Supplies are calculated and added to determine the Fee total.
2% Hazmat fee on parts only
(.02 x 125.00):
2.50  
3% Supplies fee on labor only
(.03 x 225.00):
6.75%  
--------- ------ ------
Fee total:   9.25
3. If selected, discounts are calculated and subtracted from the line items to determine the Discount.
15% discount on parts
(.15 x 125.00):
18.75  
$25.00 discount on labor
(225.00 - 25.00):
25.00  
--------- ------ ------
Discount:   (43.75)
4. On the Order window, Tax is calculated based on the various line item types (parts, supplies, labor).
  • Note: Items flagged as tax exempt are not included in the tax calculation.
5% tax on taxable parts
(after discount, .05 x 106.25 ):
5.31  
5% tax on taxable supplies
(.05 x 6.75):
.34  
7% tax on taxable labor
(after discount, .07 x 200.00):
14.00  
7% tax on taxable hazmat
(.07 x 2.50):
.18  
---------- ------ ------
Tax total:   19.83
5 The Total is calculated.
------   -------
Total:   $335.330