Hi Tom,
Thanks for your reply.
OK, I see the problem. Some taxes cut in at a minimum item or purchase
price. A promotional adjustment can lower the price the customer is paying,
so they should not have to pay any tax. However, the tax is being calculated
on the base price, before any promotional adjustment.
I think your original change was a partial fix, but only when the order
quantity is one. In the more complex situation where the quantity is greater
than one, at present the tax calculation does not have the information it
needs. All it has is the base unit price for the item ("itemPrice"), and the
total amount for the item ("itemAmount", which is itemPrice * quantity -
adjustments).
Your new patch breaks when the quantity is greater than one, so r1449615
should stay for now. However, it is limited and not a complete fix.
Here's what I think needs to happen.
1. We need to define two categories of item adjustments:
- those which modify the price, including promotional pricing and discounts
- adjustments for additional services such as shipping, an extended warranty
and so on.
The first category should be combined with the product price before tax
calculations are done. The second category may need to be taxed separately.
2. An additional list of data needs to be supplied to the tax calculation, a
list of adjusted unit prices with promotional discounts and any other
adjustments in the first category above. The tax calculation would, of
course, use the adjusted unit price, so the change at
https://fisheye6.atlassian.com/browse/ofbiz/trunk/applications/accounting/src/org/ofbiz/accounting/tax/TaxAuthorityServices.java?hb=true#to215
won't be needed any more.
If we do these, there would be no need for the calcTaxAfterPromotion
attribute. In effect, it would always apply, for adjustments in category 1.
If anyone didn't want that behaviour, all they would need to do is define an
adjustment in category 2, not 1.
I have created a new Jira issue at
https://issues.apache.org/jira/browse/OFBIZ-5163. I would like comments from
everyone before we start work on any changes.
Tom, I believe you found a real problem in OFBiz, thank you for your
efforts. In future, please create a Jira issue so we can see proposed
changes before they are committed, not after.
Cheers
Paul Foxworthy
Saroj Khamlue wrote
> Hello Paul Foxworthy,
>
> I'm Tom, I'm working at Antwebsystems (Hans's company).
>
> I did the change on r1449615. the detail is If you set a tax rule to tax
> on items that cost more than $100 for some regional tax authority and then
> configure a promo that lowers the price of that product below $100 then
> the item is still charged tax.
>
> For example :
> The tax rule is 10% (if min item price is 100$) and the promotion is -20%.
> If we buy 1 item price 100$, total is 80$ and tax will be 10$. We don't
> want to charge tax on this case but if we buy more than 1 item that's fine
> to charge tax on the final amount.
>
> This case will happen only when we buy only one item if item amount(with
> discount) less than item price.
>
> Please look at
> calcTaxAfterPromotion.diff
> <http://ofbiz.135035.n4.nabble.com/file/n4640061/calcTaxAfterPromotion.diff>
> that make the same result with r1449615 and let me know what do you think
> or any suggestions.
>
> Regards
> Saroj Khamlue
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