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How to calculate Sales Tax and Service charge from an invoice total without a subtotal

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    How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    I am attaching a spreadsheet with an example on row 1 of how our point of sale calculates the invoice total from the sale total

    Essentially it arrives at a subtotal of all sales then multiplies that sale subtotal by the tax percentage to get the sales tax and the service charge percentage to arrive at the service charge. It then adds the calculated tax and calculated service charge to the sale subtotal to arrive at the invoice total.

    We have records with the invoice total and know the tax percentage and service charge percentage. We need to back into the correct tax and service charge amounts then subtract them from the invoice total to get a sales subtotal.

    Is this possible or are we missing too many variables?

    Thanks!
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    Re: How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    Using a bit of algebra, let the unknown sales amount be x. Now we have the equation x + .071x + .22x = 77,460
    Adding the like terms on the left side yields 1.291x = 77,460
    Dividing both sides by 1.291 yields x = 60,000
    Therefore (using math words) the formula to find the sales amount given the invoice total, tax percentage and service charge percentage is: =F5/(1+B5+D5)
    From there use the formulas you already have in C2 and E2
    Let me know if you have any questions.
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    Re: How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    Thanks for your help! Worked like a charm.

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    Re: How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    You're Welcome, thank you for the feedback and for marking the thread 'Solved'. I hope that you have a blessed day.

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    Re: How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    Hi JeteMC,

    I have the same issue, however for me, the 22% service charge is also taxed (tax rate of 6.75%, that I can change myself though.)

    Is it possible to also do this in excel, or is it too many variables at once? I tried to simply add a cell that calculates the tax on the Service Charge and then add that cell to your formula in A5, but I get the dreaded circular references error. Any help you could provide would be appreciated.
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    Re: How to calculate Sales Tax and Service charge from an invoice total without a subtotal

    @Taylor254

    Administrative Note:

    Welcome to the forum.

    We are happy to help, however whilst you feel your request is similar to this thread, experience has shown that things soon get confusing when answers refer to particular cells/ranges/sheets which are unique to your post and not relevant to the original.

    Please see Forum Rule #1 about hijacking and start a new thread for your query.

    If you are not familiar with how to start a new thread see the FAQ: How to start a new thread

    I have closed this thread and no further posts can be made here.
    Alan עַם יִשְׂרָאֵל חַי


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