Subtotal

Invoice Components

The sum of all line items before taxes, discounts, or other adjustments are applied.

Detailed Explanation

The subtotal is the preliminary total on an invoice that adds up all line item amounts but doesn't include taxes, shipping, discounts, or other additional charges. It's an important intermediate calculation that helps customers verify the base cost before additional fees. The subtotal is used to calculate percentage-based taxes and discounts, ultimately leading to the final total amount due.

Examples

  • Subtotal of $1,000 before adding 10% sales tax
  • Three line items totaling a subtotal of $5,500

Related Terms

Line Item Tax Discount Total Amount Due

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