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About Cumulative Tax

Cumulative tax is kind of second tax. There are two kinds of seconds tax.

  1. Cumulative tax
  2. Non-cumulative tax

Cumulative tax

In cumulative tax the second tax is calculated on net + tax1. Example:

Subtotals: 100
Tax 1(10%): 10
Second tax(7%): (100 + 10)*0.07 = 7.7
Total: 117.7

Non-cumulative tax

In non-cumulative tax, the second tax is calculated only on net. Example:

Subtotals: 100
Tax 1(10%): 10
Second tax(7%): 100*0.07 = 7
Total: 117

To deactivate cumulative tax

By default Totals calculates a cumulative second tax. To change this behavior

  1. Choose Main Toolbar > Preferences.
  2. Choose Taxes & Units tab.
  3. Deactivate the checkbox Cumulative tax.
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