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.
The Gross to Net formula may include the operators given in the table below.
Tag for the gross amount, which will be used to calculate net amount
For a 7% state sales tax, the gross to net formula would be entered as follows:
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:
Parentheses are used to indicate that the 10 dollars should be subtracted from the gross amount before the 6% sales tax is deducted.
No, don’t include a currency symbol. The net amount will display in the currency used for the expense.
Replicon's Time Intelligence platform is a new way of analyzing and tracking employee's time. It provides one trusted hub for time and work, performs intelligent processing based on AI and Machine Learning. Learn more on how to optimize your company's most valuable asset - Time.