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Coupons & Tax


Greg-Mega

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This seems like a bug, it doesn't appear I am doing anything wrong but I could be.

 

In Australia the sales tax (GST) is 10% on the total amount of the goods or services.

 

I have a service priced at $130.91 in Blesta so $144.00 including GST.

 

This is all fine, have been using Blesta for a few years now V2 and now V3 but I've just started using Coupons.

 

I've created a Coupon which adds a discount of $40.91 to the above mentioned so the end result should be $99.00.

 

When I add a service and on the preview this is spot on:

Sub Total: $130.91
Setup Fee: $0.00
Discount: $-40.91
GST (10.0000%): $9.00
Total: $99.00

However, once submit this the invoice that's generated is $103.09 because it's calculated in a different order than the preview.

 

Preview = Sub Total + Setup Fee - Discount + TAX = $99.00

Invoice = Subtotal +Setup Fee + Tax - Discount = $103.09 (and the total GST is no longer 10% of the sale price anymore)

 

So one of these ways is right, one is wrong, my view is the preview is right and the invoice is wrong seeing as Blesta uses pre-tax pricing, the coupon should be pre-tax with tax added to the final sub total.

 

I can fix this manually by apply tax to the coupon line in the invoice, but that's not ideal for automation of renewal.

 

Make sense?

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Doesn't seem like a hard fix to me... If the service has tax applied to it the coupon discount should too so it calculates correctly.

 

Then if the service doesn't have tax, the discount is applied pre-tax and all is good (eg. if I was selling Outside of Australia it would be an export sale and would be GST free) I can't see any issue with that but I'm not all that familiar with taxation in other countries. The only thing confusing about it is when creating the Coupon, it could do with a note there maybe about it being based on the pre-tax amount maybe, just maybe, you would only do it once then learn you're doing it wrong.

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Doesn't seem like a hard fix to me... If the service has tax applied to it the coupon discount should too so it calculates correctly.

 

Then if the service doesn't have tax, the discount is applied pre-tax and all is good (eg. if I was selling Outside of Australia it would be an export sale and would be GST free) I can't see any issue with that but I'm not all that familiar with taxation in other countries. The only thing confusing about it is when creating the Coupon, it could do with a note there maybe about it being based on the pre-tax amount maybe, just maybe, you would only do it once then learn you're doing it wrong.

the probleme in how the calculation done , Tax should be applied to sub-total not to the original service price .

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In theory you are right, it should be calculated on the sub total but there are cases where invoices have taxable and non-taxable line items which is what Blesta supports so it has to be the sub-total of the taxable goods - but is the coupon related to a taxable good or not?

 

The Coupon is a negative value which needs to offset another line item (be it a taxable item or non-taxable item) so the Coupon line needs to know if it's offsetting it from a taxable item or not.

 

That being said, probably the easiest way would actually just be to get rid of the coupon negative value, just have it subtract it from the actual service line item and append [Coupon XXXXXXX] to the line item and be done with the worthless negative values.

 

In an ideal world were everything is either taxable or not then from the subtotal is fine eg. 

 

No Tax

Product 1 @ $1.00 

Product 2 @ $1.00

Coupon 50%

Total invoice = $1.00

 

10% Tax

Product 1 @ $1.00 10% Tax

Product 2 @ $1.00 10% Tax

Coupon 50%

Total invoice = $1.10

 

Taxable and Non-taxable 

Product 1 @ $1.00 10% Tax

Product 2 @ $1.00 Tax Free

Coupon 50% <-Without this line knowing what the taxable status of the line item it's off-setting is, whats the expected final invoice total?

Total invoice = ???

 

If the coupon was applied to both Product 1 and 2 ($2.00), the sub-total would $1.00 + What tax? What portion of the 50% discount went to Product 1?

If the coupon was applied to Product 1 ($1.00), the sub-total would be $1.50 + 10% for Product 1 would give you a total of $1.55 (Inc. 5 cents Tax)

If the coupon was applied to Product 2 ($1.00), the sub-total would be $1.50 + 10% for Product 1 would give you a total of $1.60 (Inc. 10 cents Tax)

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Your idea as you have post maybe workable , but we are searching teh best way with out any internvention from us with coupons . you solution has open me a new solution .

if the invoice has multiple items where some are taxable and others no , we need here two sub-total .

sub-total_taxable

sub-total_no_taxable .

apply tax to sub-total_taxable , and then show the total of both in the final price .

then i think with this we can resolve your and any otehr case .

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In my view there is nothing wrong with the tax calculation, it's the applicable tax on a coupon that's the issue to determine what it off-sets a taxable and non-taxable service. If it didn't apply them as negative values and subtracted from the service line it'd be all good and so would it if it passed in the taxable status of the service to the coupon line item that it applied to.

 

Both would solve the problem, getting rid of the negative values would probably be more transparent while creating a coupon but the negative values is probably better for the customer/client for feel good factor only, doesn't mean anything other than it lists the figure they're saving.

 

The subtotal being visible is a moot point. 

 

Milk $1.00 TAX Free

Hosting Services $1.00 10% TAX

 

Subtotal $2.00

10% Tax $0.10

Grand Total $2.10

 

Is perfectly acceptable.

 

Would be GREAT if a Blesta dev could chime in here...

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Yes, this is a known issue, CORE-861, that we're currently discussing in private on how to resolve.

 

I know this issue sounds simple on the surface, but is complicated by the fact that a coupon can be applied to multiple services at a time, some of which may be taxable and some that may not be. So the issue is with trying to resolve how best to calculate and represent the discount.

One such solution is to add multiple line items, one for each service that the coupon applies to. This, however, can't be done if the coupon is for a fixed amount discount.

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  • 11 months later...

v3.5 introduced new price calculations, but they only affect queued service changes and not yet the rest of the system. The coupon system needs to be refactored to keep up with the updating features, which unfortunately has not been possible yet.

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  • 1 year later...
3 hours ago, Hix said:

the bug is still there with the current STABLE release.

I can't say for sure it's resolved in 4.0, but I would strongly suggest giving it a try in 4.0 beta 5 (soon to be released) and report back if it is still an issue. We refactored a lot in terms of how pricing is handled with the new pricing presenter. If it's still an issue, it'll be easier to resolve moving forward.

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14 minutes ago, Paul said:

I can't say for sure it's resolved in 4.0, but I would strongly suggest giving it a try in 4.0 beta 5 (soon to be released) and report back if it is still an issue. We refactored a lot in terms of how pricing is handled with the new pricing presenter. If it's still an issue, it'll be easier to resolve moving forward.

OK, gonna test it.

Paul I'm either INSANE or I've just seen Blesta calculating Coupons + Tax with two different results.

Now it's OK, but it was not in the morning. Looks like I've edited SOMETHING which fixed the issue. Dont know what though...

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