The Best Way to Calculate Your Total and Present Your Coupons

[CQPeter]

Rookies:Suggested Reading


First things first! I want to give massive credit to Howesmath (please rep her for sharing her approach - see the post below (#2)). Her approach is more accurate than mine (I have shown a way to make mine somewhat accurate in the example by estimating the tax) but usually I am too lazy to do it her way

Here is my (somewhat) simplified approach:

1.) I start by totaling the value of all items. I write that number down

2.) The next step is to convert everything to a pre-tax basis. To calculate this, I add up all the manufacturer Q's and divide by the quantity 1+tax rate. In my case, Michigan has a 6% tax rate. Therefore, I divide the manufacturer Q total by 1.06. The resulting value is on a pre-tax basis.

3.) You then add up all your CVS Qs.

4.) You then take the item total and subtract both CVS Qs and the calculated manufacturer Q value (from step 2). Your ECBs need to be the largest value possible that does not exceed this.

5.) OOP = (the calculated value from step 4 - ECBs you have) * (1+ tax rate). i.e. $0.33 * 1.06 = $0.35

The only time this does not work perfectly is if your Manu Qs are for non-taxable items or you have Qs that require adjustment/cashier input. This can be partially fixed by handing the Qs in the following order.

1.) $$/$$, 2.) ECBs, 3.) CRTs, 4.)other CVS e-mail Qs 5.) Manufacturer Qs that require adjustment/cashier intervention 6.) Normal Manufacturer Qs

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HYPOTHETICAL EXAMPLE
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Purchasing:

1 * $4.99 Tylenol RR
2 * $2.99 Pledge Dusters
2 * $1.49 Palmolive
5 * $1.00 Propel
1 * $14.99 Contour
2 * $3.29 Crest Pro Health Night TP
4 * $1.99 Lumene Body Aktiva (.34 oz)
1 * $2.49 CVS Beauty soap 3 pack

Total = 4.99 + 5.98 + 2.98 + 5.00 + 14.99 + 6.58 + 7.96 + 2.49 = $50.97

Coupons:

1 * $5.00 Tylenol - will require override to $4.99
2 * $3.00 Pledge Dusters - will require override to $2.99
2 * $0.40 Palmolive
5 * $0.50 Propel tearpad
1 * $14.99 Contour (assumes you have a written prescription for someone)
1 * $3.29 Crest Pro Health Night TP (Bogo Q)

Total = 4.99 + 5.98 + 0.8 + 2.50 + 14.99 + 3.29 = $32.55 / 1.06 = $30.71

1 * 2/10 CVS products CRT
1 * 2/10 CVS e-mail (different code than CRT)
1 * 10/50 crt (for the purposes of this example, we will pretend that there was a $10/50 e-mail available)

Total = 2.00 + 2.00 + 10 = $14

Total Qs = $44.71

(if you wanted to go the extra mile, you could take the $5 in Propel which is non-taxable and add in $2.50 * .06 = $.15

In this case, I will

Therefore Total Qs = $44.86

ECBs required = $50.97 - $44.86 = $6.11 Round to nearest whole dollar total = $6 ECB

OOP = $0.11 * 1.06 = $0.12

I hand the following Qs in the following order to the cashier

1. $10/50 e-mail (actually CRT, but this is hypothetical)
2. $2/10 CVS brand e-mail
3. $2/10 CVS brand CRT
4. Ask cashier to call manager up because there is a big Q that requires approval
5. 2 * $3.00 Pledge duster - mention to cashier that the second one will require override to $2.98 (this makes them feel more comfortable that you know what you are doing)
6. $5 Tylenol - mention to cashier that it will require overriding to $4.99
7. BOGO Crest - mention the $3.29 cost for the TP
8. By this time the manager is walking up
9. $14.99 Contour (and copy of prescription) mention that this is the big coupon that requires cashier entry and manager approval
10. 2 * $0.40 Palmolive IPs
11. 5 * $0.50 Propel tearpads
12. Swipe giftcard for $.12

Walk out with the following ECBs:
$2.00 Palmolive + $2.00 Propel + $14.99 Contour +$6.58 Crest + $8 Lumene Body Aktiva + $1 CVS soap = $34.57

Net ECBs = $34.57-$6 = +$28.57 ECB

Note: if you handed the $10/50 email last, you would pay have to pay tax on $35.97 ($2.16 OOP - a net OOP loss of $2.04). If you handed a $6 ECB to the cashier last, you would pay tax on $31.97. The $6 ECB would be overridden down to $4.20 (a net OOP of $1.80). If you tried to hand either of the $2/10 CVS brand Qs last, they would be adjusted to $0.44 credit and you would have to pay $1.68 OOP (of course that would be a net loss of $1.56 OOP). If you handed the $5 Tylenol Q, free Contour Q, or Pledge Q last, you would have to pay tax on $25.97 ($1.56 OOP - a net OOP loss of $1.44).

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END EXAMPLE
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P.S. THIS METHOD IS SPECIFIC TO MICHIGAN!! Your state may vary by how (and if) they tax manufacturer coupons. However, I have been told that it works very well for MOST (but not all) states. One other thing, if you want to be diligent, you can fix the inaccuracy in step 2 by removing the coupons for non-taxable items from the adjustment calculation and adding them in separately at face value. I usually don't do this because MI taxes almost everything. The big bonus from this approach is that it will allow you to use Manu Q's against tax (again, I can only verify that it works in Michigan)

[howesmath]

I always give my coupons in this order: CVS $/$$ coupons, CVS CRT coupons, ECB's and then mf coupons. Here's what I do to calculate my total OOP:

1. Add up everything I have, taxable or nontaxable.
2. Subtract my $/$$ CVS coupons, ECB's and CVS CRT coupons.
3. From this subtotal subtract the amount of any nontaxable items.
4. Multiply by my sales tax. I multiply by 1.07 because my sales tax is 7%.
5. Add back the amount I subtracted in step 3 for my nontaxable items.
6. Subtract the mf coupons that I am using.
7. Now I have my total OOP.

Oh, one more thing, if my subtotal is negative or $0.00 after step 3, then I won't be charged any sales tax. At least, that's how it works here in Florida.

Also, you do not want to give a mf coupon that will need to be entered manually or adjusted as your last coupon. For example, if you have a BOGO coupon or a free coupon, the cashier will need to enter the amount of the coupon. The register will not let the subtotal go negative with that coupon and they will only be able to enter the amount that would make the subtotal go to $0.00. I think that this is the case of a coupon over the amount of the item, also. They will need to enter the lower amount manually. I make sure that I don't have these types of coupons as my last coupon in my stack.

[Mom2my3sons]

Here's how I do this.

1) add all the manufacturer coupons for taxable items together. multiply that times my tax rate.
e.g. man coupon total = $10 tax rate is 7%=$.70

2) total all my items and subtract ALL coupons, including man, CVS $/$ and ECBs. This can even be a negative number. (aiming for a slightly negative number is ideal)

3) if you still have a significant part of the bill left (> $1), multiply that times your tax rate

4) add the totals from lines 1, 2, and 3

When I use this method I am always within a penny or 2 of my actual total. It doesn't matter what order I give my coupons in, as long as the last coupon I give is a manufacture coupon that will NOT beep.

[Mom2my3sons]

I just double checked my 3 receipts with taxable items.

I am not being charged tax.

My orders are mixed, taxable/nontaxable on all 3. On all 3 my OOP is under $3 after all discounts/ECB. On all three I was charged $0.00 tax even though the receipt is showing items as taxable (small t for taxable, small n for nontaxable).

Also on one of mine the taxable item was one that rang in last and had no coupon.

Do some states not charge tax on the discounted portion of a bill? I need to go pull a grocery store receipt and check. Could be a glitch on CVS part.

Sorry guys, if it is I will be telling them about it.

there are states that do not charge tax on coupon values. If you are in one of those states you are very lucky!

[Mom2my3sons]

ECB cannot be applied for tax amount. Let say your grand total before ECB is $2.99 you cannot use $2.99 EBC if any of this amount applies to taxable item(s), a small portion of this will be tax. If you are willing to give up that amount, ask cashier to modify your ECB anyway and pay up the tax.

That's why it's important to give manufacture coupons last! Man coupons can be applied towards the tax.

[VJWilson27]

What Karen is saying is:

Manufacturer's coupons can actually pay sales taxes. CVS store coupons (ECBs/CRTs) cannot pay sales taxes, but actually reduce the amount that is taxed. That is why you give your CVS store coupons to reduce the amount of sales tax that is charged to you. If you have manufacturer's coupons, then in her situation sales tax is charged on the manufacturer's coupons. But by giving the manufacturer's coupons last in conjunction with the CVS store coupons first, her subtotal goes into the negative so that when the sales tax is added, she uses a manufacturer's coupon to pay that sales tax resulting in less OOP.

[CQPeter]

In Florida, the ECB's, $/$$ CVS coupons and CVS CRT's will allow your subtotal to go negative if you give them to the cashier first. If you give them last, then they will adjust the ECB's to only allow the subtotal to go to $0.00. If you have $40.00 worth of stuff and use a $15 ECB, you are only charged taxes on $25 worth of stuff, no matter which order your coupons are rung. The only difference is whether the register will allow your subtotal to go negative or not. It will if all of the CVS coupons, including ECB's are put in first. If they are put in last, they will adjust them so that your subtotal is $0.00.

At most stores in Florida if you use store coupons, if you use store coupons, the registers will deduct the store coupons before calculating taxes. You do have to pay taxes before mf coupons, though.

Here's an example of what happens if you give your $/$$, CVS CRT's and ECB's first and then mf coupons:

(1) Palmolive @ $1.49 = $1.49
(1) Milk @ $3.49 = $3.49
(1) Bags of Candy @ $2.50 each = $5.00
(3) Colgate Toothpasts @ $2.99 each = $8.97
(2) Renu Travel Packs @ $2.49 each = $4.98
(1) Playtex Sport Tampon @ $4.99 = $4.99

Subtotal = $28.92

CVS Coupons:
$4/$20
$1 CRT Coupon
$15 ECB

Mf Coupons:
$0.40/1
$0.75/1
$0.50/1
$1/1
$1.50/1
$2.50/1
$2.50/1

Subtotal = $-0.23
Tax @ 7% = $0.38
Total = $0.15

I was charged taxes on $28.92 - $4 ($4/$20 CVS coupon) - $1 ($1 CVS CRT) - $15 ($15 ECB) - $3.49 (Milk is nontaxable in FL) = $5.43.

If I gave my ECB last then, the register would have only allowed my subtotal to go to $0.00, not to -$0.23. I would have still been charged the same amount of tax, but the ECB would have been adjusted to $14.77. My subtotal would have been $0.00 and my total $0.38 instead of $0.15. It wouldn't be a big deal in this case, but I have had receipts where the subtotal is close to -$1.00. In that case, it would make more of a difference.

According to my understanding, this is the way it works in most states. I can personally verify that Michigan is the same ...

[maryccc]

I've got a spreadsheet that calculates it all, if anyone wants to try it out.
http://spreadsheets.google.com/ccc?k...l=en_US&pli=1#

[Mom2my3sons]

I have a question. I live in texas. I never give my $ ecb's until the end. Am I doing something wrong?

They ring up the items. I use any $$/$$ Q's and CRT Q's first. Then manu. Q's. Then pay whatever is left with ECB's.

If I am not saving the most money, I sure need to know!!!!

That's what this thread is about. Start at the top, it should tell you all you need to know.

[ayenbe]

I keep all of my coupons in a blue envelope with my shopping list paperclipped to it. At checkout, I ditch the list (making note of the total owed via gift card or cash) and paperclip and pull out the coupons. I put the coupons on top of the envelope and hold it in my hand. I hand the cashier one at a time. If need be, I state that I have a problem with my coupons sticking together and would prefer to hand them to them one at a time. I also think of it as a card game... they only need to see one at a time.