This article will show you how you can changes the tax calculation, based on after or before discount.

I. Tax Calculation Configuration through Setup Menu

Step 1. Go to Setup - Select Module Configuration on More Menu

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Step 2. Select Sell section then find "Tax Calculation"

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Step 3. Changes the default tax calculation then Save

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Step 4. Result

As you can see the tax is calculated before final price get discount.

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