Some states require applying the full tax amount before any discount coupons are applied to an Invoice, in this scenario tax is 7.75%.
In our management program, when discounts are applied it will reduce the total amount before tax, so the tax is also reduced. So, if you applied $10 discount on parts, it reduces the total of the part to $90 so the tax will only be $6.98.
Some states consider discount coupons to have face value. So some states require charging tax on the grand total first, before any discount coupon is applied. To make this happen, you will need to apply the discount as a payment.
1. Go to setup, then standard tables income/payment types tab, select payment types, and click add: