How are invoice totals calculated in Encyro?

Our goal is to ensure accuracy and transparency in how your final total is determined. Below is an overview of how the total is calculated for invoices created using Encyro:

1. Line Item Calculation

Each item’s total is calculated by multiplying its unit price by the quantity. If any discounts or taxes are attached to the item, they are applied directly at the item level.

Item-level discounts: If the discount is a compound discount, it’s applied on the already-discounted amount rather than the original price. The order in which you add the compunded discounts will affect the amount due.

Item-level taxes are applied after any item-level discounts, either on the pre-tax discounted price or, if the tax is set as a compounded tax, on the result of prior taxes and discounts.

2. Invoice-Level Fees

Additional fees may be applied to the subtotal of all items. These are calculated based on either a flat rate or a percentage of the subtotal.

Compound Fees: Applied on top of the running total including other fees.

Non-Discountable Fees: These fees are excluded when calculating how much of the invoice is eligible for discounts.

3. Invoice-Level Discounts

Invoice-level discounts are applied to the total after fees, excluding non-discountable fees and items.

Compound Discounts: These apply to the running total after previous discounts have been applied.

Non-discountable items and fees are excluded from the discount calculation.

4. Invoice-Level Taxes

Taxes are applied last. They can be a flat amount or percentage-based.

Compound Taxes are applied on the full total after all other taxes, fees, and discounts.

Non-Taxable Items and Fees: These are excluded from the tax calculation.

5. Final Total

Once taxes are added, we round the total to the nearest cent and ensure that it is never negative.