What does the system use to determine the calculated amount of a line item in sales transactions?

The calculated amount of a line item in sales transactions is determined by the unit of measure. This refers to the quantity of items sold and their measurement, which directly impacts the overall price calculation. For example, if a product is sold by the dozen or by individual units, the unit of measure will dictate how the total amount is computed based on the quantity being purchased.

Utilizing the unit of measure allows the system to accurately compute values when items are bought in various amounts or sizes, ensuring that pricing is consistent and aligned with how products are sold. In contrast, unit cost refers to the price of an individual item, the sales tax rate applies to the total sales amount but does not determine the amount of the line item itself, and item category relates to classification but does not affect the fundamental calculation of sales amounts. Each of these other factors plays a role in the overall transaction record but does not contribute directly to calculating line item totals in the same way that unit of measure does.