Question

How to calculate gross total from net and tax amount?

Answer 1

The Gross to Net formula is used to calculate the net (pre-tax) amount if the user enters a gross amount (total expense amount, including taxes) for an expense. A Gross to Net formula should be defined for each expense code to which taxes apply.

If a user enters the net amount of an expense, Replicon will use the tax codeformula associated with the expense code to calculate the gross amount of the expense.

Creating a formula

The Gross to Net formula may include the operators given in the table below.

Operator Description

+ Add

- Subtract

* Multiply

/ Divide

() Indicate precedence

$Gross

Tag for the gross amount, which will be used to calculate net amount

Example 1

For a 7% state sales tax, the gross to net formula would be entered as follows:

$Gross/1.07

Example 2

For expenses that have a 6% sales tax and a flat tax of $10.00, where the 6% sales tax is applied to the net amount before the flat tax is added, the Gross to Net formula would be entered as follows:

($Gross-10)/1.06

Parentheses are used to indicate that the 10 dollars should be subtracted from the gross amount before the 6% sales tax is deducted.