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How is gross to net formula calculated under expenses?

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The "gross to net" formula instructs Web TimeSheet how to calculate backwards from the gross (total expense amount) to the net (pre-tax amount) for an individual expense. Providing this formula will ensure expense amounts are correct, whether the user enters the net or the gross amount for a specific expense.

Below is the expansion of the formula on how gross to net is calculated in the help section.

Considering that tax is 7% of Net

 

Gross = Tax + Net

 

Tax = 0.07*Net

 

Substituting Tax with the formula mentioned above,

 

Gross = 0.07*net+Net

 

Gross = Net(0.07+1)

 

Therefore,

 

Gross = Net * 1.07

 

Net = Gross/1.07

 

Note:
More information about gross to net formula is available in the below page.
https://www.replicon.com/help/what-is-the-gross-to-net-formula/

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