Sharp XE-A203 calculates tax wrong when a coupon is used?

Question

We have a Sharp XE-A203 for our business and whenever we enter a discount like 10% off an order or $5 subtracted it calculates tax on the original amount.

For example, say someone purchases 2 items at $5 each. Then we give them a $5 coupon. Their total, according to the register is $5.70. That is $5 plus 7% on the original $10 purchase. Why isn't it figuring the total to be $5.35? Are we supposed to be charging tax for the original entire amount? Do we have the register programmed wrong?

Any insight would be appreciated.

Answer 1

Tax is computed on the total amount. Whether or not you had a coupon you need to collect taxes for the total sales. In bookkeeping you should have total sales, sales tax collected, and coupons as different categories. Coupons are subtracted after the grand total is done.