Applying Sales Tax to Discount Items (U.S. and Canada)
To apply sales tax to discount items, do the following:
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Understand the discount methods that can be applied to the items. For more information, see Discount Methods (U.S. and Canada).
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Review the Calculation Logic for Sales Tax on Discount Items to help you understand how the choice of discount methods can affect the tax charged for a sales order or invoice.
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Choose to apply the discount before or after sales tax has been added to the items. By default, discounts are applied after sales tax. See Applying a Discount After Sales Tax. To apply a discount before sales tax, see Applying a Discount Before Sales Tax.