How to add taxes to sub-total on an invoice?

I need to be able to calculate a tax after I have entered all other charges. Is there a way to add a sub-total

Make sure the checkbox on sales invoice form Amounts are tax inclusive is unchecked.

I unchecked the tax inclusive box but I am still not getting the results I am expecting. If i have 3 items on a sales invoice, I would like to show a line that charges 17% tax on the total of those invoices. How can I achieve this please.

Have you added some tax rates to Settings -> Tax Codes?

Appropriate tax rate must be selected on each line item otherwise checkbox Amounts are tax inclusive will have no effect.

Yes I have … This is what I am trying to achieve … if the subtotal line is not possible no problem but I need to show the tax on a separate line
Example: Item #1 - $10.00
Item #2 - $25.00
Item #3 - $15.00
Subtotal $50.00
Tax (17%) $8.50
Total $58.50

I’m having this issue as well, the tax needs to be calculated after all the items are sub-totalled together, not on an item by item basis… this makes it impossible to input all existing balances for new companies correctly, as the totals are all different… is there a way or will there be a way to add a tax to the subtotal only?

@Monsoon, the “issue” you mention is totally different from what was discussed in this two-year old topic. But your question has been discussed numerous times in the forum, if you will just search for it. The short answer to your question is that Manager calculates taxes item by item, as do virtually all other accounting programs. And this has nothing to do with opening balances for a new company. Opening balances are input directly by you when you add an account to your chart of accounts.

actually i did search the forums and this is exactly my problem. maybe some accounting programs give you the option to do it that way but not force you to. i can’t charge tax on every little separate item and then round the GST to our benefit. the GST here is 5%, and it has to be added after everything is subtotalled. it’s the same with every company i deal with here in Alberta. example:

Description qty Unit price Amount

30 Amp 125/250V recep 4 74.290 297.16
30 Amp 125/250V recep male 1 57.12 57.12
3 phase 4 pole cord end 1 251.13 251.13
1" 2 screw connector 1 2.31 2.31
3/4" 2 screw connector 1 1.11 1.11
30A cutler hammer breaker 4 24.43 97.72
Weatherproof covers 4 14.27 57.08
Labour per hour, Ken 5.5 85.00 467.50
Labour per hour, Darcy 7.5 85.00 637.50

Sub-total 1,868.63 GST 93.46
Total $ 1,962.09

but I can’t send an invoice to a company like this, they simply multiply the subtotal 1868.63 x .05% and get 93.4315, which rounds to $93.43, not $93.46. I’d be getting calls from every single customer wondering why we’re trying to cheat them, especially on bills with a large number of items and large amounts.and it would mess up all their accounting as well. Wouldn’t it be fairly easy just to add a checkbox option allowing you to charge a certain tax code on the subtotal only? or just treat the subtotal just like a line item and allow us to add a tax code just like you have it for the lines? I’m quite sure i’m not going to be the only one with this issue…

Remember, about half the time, the rounding will go the other way. And you’re not cheating them, you’re making an exact, line by line calculation of tax. This is completely in accord with guidance from CRA at Below is a direct quote:

Rounding off fractional amounts

Round off the GST/HST to the nearest cent:

If the amount is less than half a cent, you may round down.
If the amount is equal to or more than half a cent, round up.
If your customer is buying more than one item and tax applies at the same rate on all items, you can total the prices of all taxable supplies of property and services, calculate the GST/HST payable, and then round off the amount.

In other words, the default is to calculate tax on the individual line item, but calculating on the subtotal amount is permissible–definitely not required.

No, it wouldn’t. That is not how the program data files are structured.

this is what all companies here do, they total everything and then apply the gst, and the gst is then rounded to the nearest cent… I understand what you’re saying about how it should be done line by line, but since the method of totaling everything and then applying gst is equally permissible by the cra, shouldn’t there honestly be a way to achieve this in Manager? I’ve been trying to sell your program to the boss, and everything is perfect except for these gst calculations, it was enough for him to deny the request until it’s fixed or if it can’t be i have to choose another program… I like Manager lol don’t want another one, don’t like quickbooks…

It’s not my program. I’m just a user like you.

well hopefully somebody who can add this feature will eventually get around to it…

The developer has indicated there are no plans to change the way Manager calculates taxes.

loss for them, we won’t be buying it then.

You might discover there is no-one else offering what you seek, either.

That may be so, and like I said this would be perfect, but we just can’t use it as it is.

A clumsy alternative is to calculate taxes manually and add them as separate line items. But that sacrifices all the built-in features associated with Tax Codes and the ability to get the various tax-related reports. Good luck finding something that works for you.

Every double-entry accounting software needs to round tax amounts on line items, especially if you enter invoices with amounts which are tax-inclusive. Why? Because once you deduct tax amount from each line item, you need to end up with nice round figure which can be posted to general ledger.

On your invoice, you enter amounts as tax-exclusive so it’s not as important to round figures on line item level but Manager still does it. There are a few marginal advantages to it.

Before I made that decision, I checked basically all double-entry accounting systems for small businesses and every single one was doing rounding of tax amounts on line item level regardless whether your invoice was tax-inclusive or tax-exclusive.

All these complains about rounding are coming from people for who Manager is the first double-entry accounting system. Nothing wrong with that. All I’m saying, this is immutable characteristic of double-entry accounting systems and it will never change.

Well the way I saw things, you’re designing this program to be flexible to our needs, you allow us to add or remove modules depending on whether or not we need them… I never asked for the tax features to be removed, I only suggested allowing us a way to charge the tax on the subtotal. and truthfully I don’t need the tax reports or the like… I simply want to keep track of our customer base, send quotes and invoices, and know who owes what. If I am billing out a project with 5000 small items, i’m not going to go through each separate nut and bolt and figure out the gst and fractions of cents of each, and then total them up at the end. We total up the goods before gst, then use that figure to get the gst to add. Everybody here does that, even all the retail stores around here do it.

There is perhaps one solution. Manager could calculate what tax amount would be on the whole amount, then work its way to split this tax amount among individual line items.

By the way, not all retail stores are doing it that way. The biggest one, is doing it the way Manager does it.

If an item is subject to sales tax in the state to which the order is shipped, tax is generally calculated on the total selling price of each individual item.