Description
Compare base×(1-discount)×(1+tax) with base×(1+tax)-base×discount and return second minus first.
Tax-related arithmetic can apply a supplied rate or reverse a gross/net amount. The applicable jurisdiction, taxable event, allowable credit and reporting treatment are separate questions that cannot be established from the formula alone.
Compare base×(1-discount)×(1+tax) with base×(1+tax)-base×discount and return second minus first.
When to use this tool
Use Invoice Discount Tax Order Gap when you need a transparent calculation under an explicitly supplied tax convention.
How to use the tool and how it works
- Enter base, discount, tax. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read discountThenTax, taxThenBaseDiscount, gap. Use the output convention below.
Require discount in [0, 1] and nonnegative tax fraction. Compare base×(1-discount)×(1+tax) with base×(1+tax)-base×discount and return second minus first.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| base | Base | Required. Finite number. |
| discount | Discount | Required. Finite number; minimum 0; maximum 1. |
| tax | Tax | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| discountThenTax | Discount Then Tax | Required. Finite number. |
| taxThenBaseDiscount | Tax Then Base Discount | Required. Finite number. |
| gap | Difference on the stated unit and subtraction basis. | Required. Finite number. |
{
"input": {
"base": 100,
"discount": 0.1,
"tax": 0.2
},
"output": {
"discountThenTax": 108,
"taxThenBaseDiscount": 110,
"gap": 2
}
}Limitations and assumptions
- The second convention deducts a base-only discount from gross. The tool compares arithmetic policies rather than selecting lawful tax treatment; signed base amounts are allowed.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Check the applicable tax rules and source documents with the appropriate professional. Keep rate, base, timing, currency and credit eligibility explicit before using the arithmetic for a return or payment.
References
Similar or alternative tools
- Invoice Retention Release Tax Basis
Apply tax only when taxOnRelease, then add it to net retention.
- Invoice Credit Tax Reversal Base
Divide creditGross by 1+taxRate and return gross-minus-net reversed tax.