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Cumulative Taxes

For states that require taxes to be applied in a specific order or cumulatively, Flowhub gives you the control and visibility to ensure you’re calculating taxes correctly and collecting the proper amounts.   

To achieve this in Flowhub, you must first create all applicable taxes in Manage > Location Management > Taxes. Make sure to clearly name each tax for reference later.



Once all applicable taxes have been added, navigate to the Cumulative Taxes option in the Location Management drop-down.

Next, establish the order in which previously created taxes will be calculated in the cart. There are up to three tiers you can assign. Each tier calculates the tax in the order that you define. If needed, you can apply multiple taxes at each level.
  1. Select ‘What type of tax’ from the drop-down. (Med or Rec)
  2. Select ‘Which tax’ from the drop-down of previously created taxes.
  3. Select order in which to calculate. (You can apply multiple taxes at each tier)
 
Once you’ve established Cumulative Taxes, Flowhub gives you the ability to generate an example calculation to ensure everything has been setup and is calculating correctly.


Finally, select ‘Enable Cumulative Taxes’ at the top of the Manage > Location Management > Cumulative Taxes screen. Once selected, you’ll be given an alert that ‘Cumulative taxes are now enabled in the cart.’