This article describes a situation which occurs when an order level discount is applied on an order which contains both taxable and non-taxable products. Since the software has no accurate way to properly calculate how the discounted amount is to be applied, it is recommended that users create two separate orders: one for taxable items and one for non-taxable items. Alternately, the user may discount each line item separately.
The software considers an order level discount as taxable and a message will appear to alert users to this fact
Beginning with Hot Fix 333587, the software will no longer
calculate tax rates as a negative number and will also warn users of
possible tax inconsistencies. When the quote or order is saved, the
message below will appear:
Notes