Some states and cities have multiple tax rates. For instance, drinks are taxed at 8.75% and food at 7.75%. To handle this situation we recommend the following workaround:
1 Change your items sale prices to include tax.
2 On your receipts, add a line telling your customers tax is included.
3 All your drinks that are taxed at 8.75% should all be in a department called DRINKS.
4 All your food taxed at 7.75% should be in a department called FOOD.
5 If you have non-taxable items put them in yet another department to keep them separate.
6 At the end of the month run a sales by department report and back out the proper tax from the total sales in each department.
Back Out Tax
1 To back out the tax, divide total sales by 1 plus the sales tax for that department to get the amount before tax.
Sales tax rate for the FOOD department: 7.75% = .0775
Total sales including sales tax: $18,295
Total sales NOT including sales tax = $18,295 / 1.0775 = $16979.11
Total sales tax = $18,295 – $16979.11 = $1315.89