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

Let's say your labor is not taxable, but your 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 dozens of possible scenarios to cover, but you can arrive at the correct totals by following a few rules:

  1. Bundled item(s), or child item(s), 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 children 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.

For an example of #3 above, see the following:


Labor = 0 taxable and non taxable sales, 0 tax
Part = 100 taxable sales, 10 tax

Have more questions? Submit a request

1 Comments

  • 0
    Avatar
    Alicia Wiggin

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

Please sign in to leave a comment.
Powered by Zendesk