Calculating order totals

When you create orders, you can view order details and receipts using the Orders app on your test merchant's dashboard. The order receipt shows the order total breakdown.

Sample order receiptSample order receipt

Sample order receipt

The following example shows how to calculate order totals.

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NOTE

When rounding decimal amounts smaller than a cent, such as tax per line item, calculate rounding with the round half up rule. For example, the rounding value of $33.654 is $33.65 and the rounding value of $33.455 is $33.46.

Step 1: Line item calculations

Starting with the line item price, add any modifier costs.

In the following table, the cost of the Avocado and Tofu modifiers is $1.00 each. When you add the price of these modifiers to the Caesar Salad price, the subtotal with modifiers is $14.00 ($12.00 + $1.00 + $1.00). Similarly, the Greek Salad subtotal with modifiers is $12.00 ($10.00 + $1.00 + $1.00).

Line item

Price

Modifiers

Cost

Subtotal with modifiers

Caesar Salad

$12.00

Avocado
Tofu

$1.00
$1.00

$14.00

Greek Salad

$10.00

Avocado
Tofu

$1.00
$1.00

$12.00

Step 2: Line item discounts

From the line item subtotal with modifiers:

  1. Subtract any percentage discounts, and then
  2. Subtract any numerical discounts.

In the following table, the value of the Lunch deal line item discount is $1.00. When you apply this discount to the Caesar Salad subtotal, the new subtotal after discounts is $13.00 ($14.00 - $1.00).

The value of the 25% off select salads line item discount is 25% of the Greek Salad subtotal (25% of $12.00 = $3.00). When you apply this discount to the Greek Salad subtotal, the new subtotal after discounts is $9.00 ($12.00 - $3.00).

Line item

Subtotal

Line item discounts

Value

Subtotal after discounts

Caesar Salad

$14.00

Lunch deal

$1.00

$13.00

Greek Salad

$12.00

25% off select salads

$3.00

$9.00

$22.00

Step 3: Order-level discounts

From the subtotal after line item discounts:

  1. Subtract any order-level percentage discounts, and then
  2. Subtract any order-level numerical discounts.

In the following table, the value of the 15th visit 15% off order-level discount is 15% of each line item subtotal. When you subtract this discount from the Caesar Salad subtotal, the new subtotal after order-level discounts is $11.05 ($13.00 - $1.95). Similarly, the Greek Salad subtotal after order-level discounts is $7.65 ($9.00 - $1.35).

Line item

Subtotal

Order level discounts

Value

Subtotal after discounts

Caesar Salad

$13.00

15th visit 15% off

$1.95

$11.05

Greek Salad

$9.00

$1.35

$7.65

$18.70

Step 4: Service charges

To the subtotal after order-level discounts, add any service charges.

In the following table, apply a service charge of 5% to the order subtotal after order-level discounts.

Subtotal

Service charge rate

Service charge collected

$18.70

5%

$0.94

Step 5: Taxes

To retrieve tax rates for order line items, send a GET request to /v3/merchants/{mId}/orders/{orderId}/line_items?expand=taxRates.

{
    "elements": [
        {
            ...
            "name": "Greek Salad",
            "price": 1000,
            ...
            "taxRates": {
                "elements": [
                    {
                        "id": "6HA0Z3Z5DPCBC",
                        ...
                        "name": "Tax B",
                        "rate": 500000 // 5% tax applied to Greek Salad
                    }
                ]
            }
        },
        {
            ...
            "name": "Caesar Salad",
            "price": 1200,
            ...
            "taxRates": {
                "elements": [
                    {
                        "id": "77FAGR71YYD5M", // tax rate object
                        ...
                        "name": "Tax A",
                        "rate": 1000000 // 10% tax applied to Caesar Salad
                    }
                ]
            }
        }
    ],
    "href": "http://sandbox.dev.clover.com/v3/merchants/{mId}/orders/{orderId}/line_items?limit=100"
}

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IMPORTANT

If vat is set to true in the merchant properties, the merchant uses a value-added tax. This means the tax amount is already included in the line item total and no additional amount should be added for tax.

Using the subtotal after order-level discounts (Step 3), calculate tax rates per taxable line item.

In the following table:

  • Apply a 10% Tax A tax to Caesar Salad
  • Apply a 5% Tax B tax to Greek Salad

Line item

Subtotal after discounts

Tax

Tax rate

Tax collected

Caesar Salad

$11.05

Tax A

10%

$1.11

Greek Salad

$7.65

Tax B

5%

$0.38

$1.49

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NOTE

If multiple line items in an order are taxed using the same tax rate object, Clover calculates taxes on the subtotal of those items. In the above example, if the same Tax A object of 10% is applied to the $11.05 and $7.65 values, calculate tax on the sum of these values.

($11.05 + $7.65) * 0.10) = $1.87

See Tax Reports: Examples for more information about calculating taxes for line items.

Step 6: Order total

The order total is the sum of the subtotal after any discounts, any taxes, and any service charges.

In the following table, the order total is $21.51 ($18.70 + $1.87 + $0.94).

Subtotal after disounts

Taxes

Service charges

Total

$18.70

$1.49

$0.94

$21.13

Applying multiple tax rates to line items

A line item can have multiple tax rates. In the following table, each line item has the Tax A and Tax B applied to it.

Line item

Subtotal after discounts

Tax

Tax rate

Tax collected

Caesar Salad

$11.05

Tax A

10%

$1.11

Tax B

5%

$0.55

Greek Salad

$7.65

Tax A

10%

$0.77

Tax B

5%

$0.38

$2.81

See Tax Reports: Examples for more examples about different use cases for calculating line item tax calculations.


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