When you set up your Lawcus account, creating taxes for your invoices is essential. Although dealing with taxes can be complicated, the process is made simple on Lawcus. This should be one of the first tasks you complete with Lawcus.
You can now add primary and secondary taxes on Lawcus and include these in your invoices.
Steps to Set up Taxes in Settings
Click on the
Avatar Iconon the top, then selectSettings.Expand
Bill Settings, and selectTax Settings.Add the
Nameof the tax andValuein percentage, and choose betweenPrimary TaxorSecondary Tax. In the case of secondary tax, please select the calculation basis, whether it is apre-taxorpost-taxcalculation.To add multiple taxes, click on
Add New Taxand input the above details.Finally, click on the
Savebutton.
Pre-Tax Amount: A pre-tax amount means the additional tax is applied before the primary tax is considered. In other words, the secondary tax is calculated on the original invoice subtotal before adding the primary tax.
Example:
Invoice subtotal = $100
Primary tax = 10% of $100 → $10
Secondary pre-tax = 10% of $100 → $10
Final total = $100 + $10 (primary tax) + $10 (pre-tax) = $120
Post-Tax Amount: A post-tax amount means the additional tax is applied after the primary tax has already been added. This means the secondary tax is calculated on the subtotal + primary tax.
Example:
Invoice subtotal = $100
Primary tax = 10% of $100 → $10
Secondary post-tax = 20% of ($100 + $10) → 20% of $110 = $22
Final total = $100 + $10 (primary tax) + $22 (post-tax) = $132
Note: This will apply only to new invoices created after adding the tax settings and will not affect previously generated invoices.