Tax Calculations

Development Team -

rezStream Cloud calculates each individual tax on each item independently. This may result in a different value than you would see if you calculate the tax on the entire total.

Here are some examples to review:

POS Example:

We have a candy bar that is sold for $1.00 and there is a 12.4% sales tax on that candy bar. If we sell one candy bar the total would be $1.124, which would round to $1.12. If we sold two candy bars the total would be $2.248 which would round to $2.25. This all seems simple so far, but now what happens if we sell a two candy bars to two different people? Well in that case we sell each candy bar for $1.12 for a total of $2.24. (The same would happen if you sold two different types of candy bars for $1.00 each.) This means that when we look at a report for the days taxes we will see only 24¢ collected for a 12.4% tax on $2.00, when it would appear that we should have collected 25¢.

Lodging Example:

Let's say we only charge $1.00 per night for a room and also have the same tax of 12.4%. This would result in $1.12 being charged each night. A three night reservation would result in a total collected of $3.36, while a 12.4% tax on $3.00 directly would result in a total of $3.37. 

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