Adding Invoice Items – Subtotal
Used on sales forms, a subtotal item adds up the amounts of all the items above it, up to the last subtotal. A subtotal is created to apply a percentage discount or surcharge to several items at once.
Total all items above it on a form, up to the last subtotal. This is useful for applying a percentage discount or surcharge to many items.
Note: Subtotal Items, have no effect on general ledger accounts.
Note: Because Total Office Manager calculates percentages only on the line directly above; you need to subtotal the items before entering a discount item that calculates on a percentage basis.
From the main menu, click Customers > New Invoice Item, or
Complete the fields in the General Tab as follows:
- Description – Enter a description for the item — probably “Subtotal”. This description will be printed on your sales form.
- It reaches the top of the list, or
- It reaches another subtotal item.
In this instance it tallies all of the lines above it until it reaches the top of the list. It then puts the sum of those items in it’s own Amount field (see green arrow). In this way, a single Discount item (or Other Charge) can be applied to the subtotal, instead of having to apply a discount separately to each and every line item.
Subtotal items allows the freedom of applying discounts or other charge calculations on an invoice, sale, estimate (or whatever), while not being forced to apply those calculations to each and every line item. This saves a tremendous amount of work. Imagine if subtotal items were not available. To achieve the same outcome as in the previous illustration, each line item would be forced to have it’s very own discount. The process would take much longer and the result would look like the following illustration.