Tax Calculations for Bundled Items

In RepairQ you have the ability to "attach" or "bundle" items under other items on a ticket. When an item is bundled under another item on a ticket then the price of that item does not contribute towards the ticket total. Instead, that bundled item, or child item, becomes a part of the existing item. The concept is designed so that you can charge a flat fee for a repair service, but internally track your part cost (and part inventory) and labor cost separately.

When you bundle a part with another item it becomes a part of the parent item, and when we calculate tax, taxable sales, and non taxable sales we treat it as such. For example, if you sell a $100 labor item and bundle a $25 part with it, the part becomes $25 of the total service fee, and the labor makes up the remaining $75 of the total service. Let's say you have a 10% tax applied, and both the labor and part are taxable. You would have the following:


  • Labor = $75 taxable sales, $7.50 tax
  • Part = $25 taxable sales, $2.50 tax

In this scenario, the labor is not taxable, but the part is taxable. You would then have the following:


  • Labor = $75 non taxable sales, $0 tax
  • Part = $25 taxable sales, $2.50 tax

There are many scenarios, but you can arrive at the correct totals by following a few rules:

  1. Bundled items will always modify the parent item. The subtotal and discount applied on the parent item are allocated to the child items first, and any remainder is allocated to the parent item (as far as tax reporting is concerned).
  2. Discount is applied to taxable bundles items first, because discounts should reduce the tax liability.
  3. The total taxable + non taxable sales for all items in a bundle should not exceed the discounted subtotal of the parent.

Example of #3:

  • Labor = 0 taxable and non taxable sales, 0 tax
  • Part = $100 taxable sales, $10 tax. The price of the bundled item is higher than the parent item, however, the tax amount applied will not exceed a total higher than the parent item's price.
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  • 0
    Alicia Wiggin

    This was a concern just today, thanks for addressing it!

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