DHES

I am in Canada and we have 2 tax rates for retail sales, GST (Federal) and PST (Local). These tax rates are 7% and 8% respectivly for a total of 15% on all purchases.
The problem is the way POS calculates the tax is that it first calculates the 7% then adds that to the origianal price then calculates the 8% on that total rather than the original price which ends up overcharging a tax rate of 16.6% rather than the required 15%.

example:

Proper Tax calculation
Retail Price $30.00
8% PST on $30.00= $2.40
7% GST on $30.00= $2.10
Total Sale= $34.50 (15%)

POS Calculates this way
Retail Price $30.00
8% PST on $30.00= $2.40
Sub total=$32.40
8% PST on $32.40= $2.59
Total Sale= $34.99 (16.6%)

Can this be corrected?

Go to the "Tax rates" feature of the POSCONFG.EXE program and at the top of each column will be a setting for "Add this tax on top of other tax."

Make sure that both settings are set to "NO"