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.
Related links
How expenses work
Expense tracking setup checklist
Setting up expenses (video)
Setting up expense templates
Choosing which columns are available on expense sheets
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