I am somewhat confused as I don’t have a ton of knowledge in this area…
If the total product sales amount is $1.00 and it’s taxable at 10%, and we offer a 10% net 30 discount term on the invoice, you would expect the tax to still be $0.10 even if the discount is taken, right?
In other words, you don’t recalculate tax based on the discount taken, right?
Yes, tax will still be $.10 in this case typically. However, the tax treatment depends on Tax Type setup.
Thank you, I didn’t know where to look @Vinaykamboj …
My user is reporting that sometimes it takes the gross amount of the invoice and takes the net terms off of that and then other times it only takes the net terms discount off the product portion of the sale…
Does that sound right?
It seems you have pointed me to a great place… now to understand why it’s greyed out and what to do about it.
@utaylor
It is greyed for in our case also. It could be that you can change at the time of creating a new code and not after, since the tax treatment can depend on local tax laws also.
Makes sense, if you already have records out there that were calculated with that tax type you wouldn’t want to change it.
The weird part is the tax type is linked to tax codes… could you delete the tax type from the tax code and then link your new tax type… how is that any different than making a change to a current tax type… 
