Sales Tax by Tax Option

Summary of Sales Tax by Tax Option typically used for reporting sales taxes.

*Important Note:  Sales tax rates are subject to change.  It is recommended that a new tax option be created with the new tax rate rather than overwriting the old rate.  See editing a tax option section of this support article for more information.

Parameters

Start Date - start date of sales in range

Start Hour - start hour of sales in range

Start Minute - start minute of sales in range

Start Second - start second of sales in range

End Date - end date of sales in range

End Hour - end hour of sales in range

End Minute - end minute of sales in range

End Second - end second of sales in range

Location - filter the report values by location

Fields

Tax Option Name - name of the tax option

Tax Rate - tax rate of the tax option.  Changes to the tax rate on the tax option are retroactive.  See important note above.

Net Sales - sum of sales net of tax for the tax option.

Non-Taxable Sales - sum of sales of sellable items that have no tax option assigned or a tax option with a 0% tax rate.

Tax Exempt Sales - sum of sales of sellable items that are flagged as tax exempt.

Taxes Charged - sum of taxes charged to the customer for the tax option.

Total Charged - net sales + taxes charged

Aggregate Net Sales x Tax Rate - net sales x tax rate. 

Rounding Effect - Total Charged - Aggregate Net Sales x Tax Rate.  This field illustrates the following phenomenon:  Total aggregate net sales multiplied by the tax rate will almost always not match the Taxes Charged.  The reason is due to the fact that each individual transaction must be rounded to the nearest penny.  If there are thousands of transactions each rounded by half a penny, the taxes charged will be half a penny times thousands of transactions higher than taking the aggregate total of net sales x tax rate.  Here's an example

Assume a 5% sales tax:
Assume only sales of products priced at $1.99
Assume only one qty of that product were sold for each transaction
The sales tax would be $0.09 ($1.99 X 05 = $0.0895 rounded to $0.09)  
Assume 1,000 sales.  

Actual taxes charged would be $90 = $0.09 X 1,000 

However, the aggregate math would indicate that $99.50 should have been collected in taxes 1,000 transactions X $1.99 = $1,990 in sales X .05 sales tax.  It appears that $9.50 less in sales taxes have been charged than should have been.