Content was last updated in 06.22.01-00
Compound To feature in Tax Schedule Edit window is provided as some of the Provinces, apply additional Provincial tax.
Create a Tax Area [T-Area#1], tag a Tax Region [T-Reg#1]
To add Tax Schedules to this tax area, click the List button. Create a Tax Schedule [T-Sch#1] with the value in the Percent field as 10.
In the Compound To field, click the importable button tag a Tax Schedule [T-Sch#2] having 5% tax.
Add both [T-Sch#1] and [T-Sch#2] to [T-Area#1].
Create an Order [ORD#1], navigate to the Sipping Tab and tag [T-Reg#1] in the Tax Region field.
Add an item [Item#1] with unit price as 100 to [ORD#1].
Verify the Sub-Total tab of [ORD#1].
Tax is calculated as 15.50 and in the Tax Schedule Section 2 lines are listed,
One with Tax percentage as 10.50
The second one with Tax percentage as 5.
Calculation
10 % of [T-Sch#1] is compounded to 5 % of [T-Sch#2]
Therefore (10 *5/100) = 0.5
Compound tax is 10% = 0.5 % = 10.5 %
Total tax to be applied on Order is 10.5 % + 5% = 15.5%
Total Tax = 100 - (15.5/100) = 15.50
Total Order Amount = 100 +15.50 = 115.50