Our state collects sales tax on products (toothpaste, whitening gel, etc). How do we properly calculate sales tax on products where an adjustment was made on the product?

The sales tax calculations are based on the price of the taxable item.

Adjustments do not have a classification to indicate whether the adjustment is taxable or not.

Therefore, Denticon cannot tell whether the adjustment was for the taxable item or the non-taxable service.

If the office discounts the price of particular items to a particular static price, the office should consider to have a separate procedure code for the discounted item. For example, using a sample code “Z0001 – Electronic Tooth Brush”:

• If the standard office fee for the Z0001 tooth brush is $100, the office should post to the Ledger the Z0001 procedure code for $100.
• If the office regularly offers a 50% discount on the toothbrush, the office should consider to create another procedure code, perhaps entitled “Z0002 – Electronic Tooth Brush-Discounted.” The default fee for the Z0002 procedure code should be $50 in the office UCR fee schedule.

By using the desired procedure code for the desired price, the sales tax calculation will be correct.