How are taxes calculated on quotes and invoices?
In Canada, Alori adds GST (5%) and QST (9.975%) on the subtotal, each rounded to the cent. A US app adds no tax.
Alori adds the taxes for you. In a Canadian app, every quote and invoice with lines gets GST (5%) and QST (9.975%) on its subtotal. In an app set up for the United States, no tax is added.
Also called: sales tax, GST, QST, HST, TPS, TVQ, taxes de vente, calcul des taxes, taxes sur la soumission, taxes sur la facture
How the total is made
Each line is Qty × Price, rounded to the cent.
The lines add up to the Subtotal.
GST (5%) is 5% of the subtotal, rounded to the cent.
QST (9.975%) is 9.975% of the subtotal, rounded to the cent. It's worked out on the subtotal, not on the GST.
Total is the subtotal plus both taxes.
Example: a $100.00 subtotal gives $5.00 GST, $9.98 QST and a $114.98 total.
In French, the same lines read TPS (5 %) and TVQ (9,975 %).
Where you see it
Quotes: on the right of the quote page, in Preview, and on the page your customer opens to accept it.
New invoice: under the lines, before you click Create the invoice.
The total is always worked out again by Alori when you save, so what the customer sees matches what you saw.
Maintenance plans and other repeating lines
When a line is Billed Monthly, Quarterly or Yearly, the taxes are worked out on each part:
The one-time lines show as One-time, with their own GST and QST.
Each repeating part shows as "Then $X every month, taxes included".
The quote ends with First-year total, taxes included.
Invoicing a job
A job made from an accepted quote takes the quote's total, taxes included, as its price. When you bill the job without changing its lines, the invoice is that same price: taxes are not added a second time.
If you change the lines while billing, the invoice is worked out again from the new lines, with GST and QST on top.
Good to know
The rates are the same for every customer. You can't turn tax off for one quote or one customer.
A US app never shows GST or QST lines.
An invoice made by Ask Alori with only an amount (no lines) is billed at that amount, with no tax added.
If it doesn't work
The total looks a cent off from your calculator. Alori rounds each tax to the cent before adding them, the way Quebec invoices show it. That can differ by a cent from rounding only at the end.
No GST or QST lines show. Your app is set up for the United States, so no tax is added.
An invoice for a job isn't the same as its quote. The lines were changed while billing the job, so the total was worked out again. Delete the invoice and bill the job again without changing the lines.