Why is the tax rate showing in NetSuite off?

Overview

When calculating tax in NetSuite, the tax rate displayed in NetSuite is incorrect even though the tax amount is correct.

Environment

NetSuite

Resolution

• The tax rate field automatically multiplies the taxable amount by the tax rate.
  • For example, a $1.00 product sold in Texas is 80% taxable. The tax rate is 8.75%. This produces a tax amount of $0.07 cents.
    • $1.00 X .8 = $0.80
    • $0.80 ✖ .0875 = $0.07 
      • In NetSuite, the tax rate may show a 8.74% rate because NetSuite reverse calculates the rate based on the value provided by AvaTax
      • This normally only happens with small values due to rounding.