What is the Gross to Net formula?

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 code formula 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.

FAQs

Should we include a currency symbol in formulas?

No, don’t include a currency symbol. The net amount will display in the currency used for the expense.

 

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