[
https://issues.apache.org/jira/browse/OFBIZ-5163?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
]
Paul Foxworthy updated OFBIZ-5163:
----------------------------------
Description:
Some taxes cut in at a minimum item 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 item price, before any
promotional adjustment.
r1449615 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).
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.
So a new attribute should be added to the OrderAdjustment entity to say which
it is.
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.
This issue was found and worked on by Tom at ANTWebsystems, thanks for your
help.
was:
Some taxes cut in at a minimum item. 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 item price, before any promotional
adjustment.
r1449615 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).
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.
So a new attribute should be added to the OrderAdjustment entity to say which
it is.
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.
> Tax calculated on unit price before adjustments
> -----------------------------------------------
>
> Key: OFBIZ-5163
> URL: https://issues.apache.org/jira/browse/OFBIZ-5163
> Project: OFBiz
> Issue Type: Bug
> Components: accounting
> Affects Versions: SVN trunk
> Reporter: Paul Foxworthy
> Assignee: Paul Foxworthy
>
> Some taxes cut in at a minimum item 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 item price, before any
> promotional adjustment.
> r1449615 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).
> 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.
> So a new attribute should be added to the OrderAdjustment entity to say which
> it is.
> 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.
> This issue was found and worked on by Tom at ANTWebsystems, thanks for your
> help.
--
This message is automatically generated by JIRA.
If you think it was sent incorrectly, please contact your JIRA administrators
For more information on JIRA, see: http://www.atlassian.com/software/jira
