You're still not answering the question I'm asking... You're looking at it from the customer point of view, not the merchant. I'm asking from a merchant point of view.
-derek Kevin Benton <[EMAIL PROTECTED]> writes: > If my read of it is correct, the customer already paid sales tax. > Therefore, you would use the formula... > > Price = Total / ( 1 + STAP ) > > as below. You'd work backwards. If you don't, you wind up paying more tax > as a merchant while your customer gets a free discount. :/ > > Kevin Benton > > WebEx Communications, Inc. accepts no liability in relation to any personal > emails, or any content of any email that does not relate directly to the > business of WebEx Communications, Inc. > > > -----Original Message----- > From: Derek Atkins [mailto:[EMAIL PROTECTED]] > Sent: Thursday, June 13, 2002 7:02 PM > To: Kevin Benton > Cc: Conrad Canterford; [EMAIL PROTECTED] > Subject: Re: Gnucash Business: Proposal: handling multiple tax accounts > > > Thanks, but this wasn't quite what I was asking. I was asking a > procedural question, not a mathematical question. I was asking how > the process works for determining prices; do you start with the final > price and work backwards, or do you work forwards? Following that, > does it imply that the "TaxIncluded" flag means work backwards, too? > That would mean that you enter the final price and the tax is computed > backwards from that? It also doesn't answer the "where do you set the > TaxIncluded flag" question.... > > But thanks for making the math simple for others on the list ;) > > -derek > > Kevin Benton <[EMAIL PROTECTED]> writes: > > > Anyone who operates a vending machine business has this problem. A little > > algebra helps on this one. > > > > Total is the total advertised price (including tax) > > Price is the actual price without sales tax. > > For this equation, STAP is the Sales Tax Aggregate Percentage including > all > > taxes. > > > > Total = Price * (1 + STAP) > > Since the total and tax rates are known, we need to get price by itself. > > First, let's get Price on the left like we're used to... > > > > Price * (1 + STAP) = Total > > Then, what we do to the left side, we must do to the right. > > > > Price * (1 + STAP) / (1 + STAP) = Total / (1 + STAP) > > > > Price = Total / (1 + STAP) > > > > Try it for yourself - plug in the numbers off a receipt you've been given > > and see if it works both ways. > > > > $1.00 item taxed at 5% requires a payment of $1.05. > > Price = $1.05 / (1 + 0.05) = $1.00 > > > > Imagine that... :) Now you know how to compute sales tax backwards and > > forwards. :) > > > > Kevin Benton > > > > WebEx Communications, Inc. accepts no liability in relation to any > personal > > emails, or any content of any email that does not relate directly to the > > business of WebEx Communications, Inc. > > > > > > -----Original Message----- > > From: Derek Atkins [mailto:[EMAIL PROTECTED]] > > Sent: Thursday, June 13, 2002 5:59 PM > > To: Conrad Canterford > > Cc: [EMAIL PROTECTED] > > Subject: Re: Gnucash Business: Proposal: handling multiple tax accounts > > > > > > Conrad Canterford <[EMAIL PROTECTED]> writes: > > > > > To do it properly, its a little more complicated than that. In > > > Australia, an extra option "Tax included" would also be appreciated, as > > > a large number of small businesses (and especially any retail business) > > > will advertise and invoice the *tax inclusive* price. Asking whoever is > > > doing the accounts to deduct the tax from every invoice as its entered > > > is not going to make you any friends... :-) > > > > Where should this "tax included" option be stored? Since prices > > are advertized with-tax, how is the tax calculation made? > > > > > I think a global table would be preferable. If someone is running > > > multiple entities, this might save them re-entering a lot of data. If > > > they are not, well it makes no difference to them. > > > > What do you mean, "global table"? > > > > > > b) How do you reference tax tables for "posted" entries? > > > > - Tax Tables are immutable. > > > > - Tax Tables are mutable until they are "used" (at which point > > > > they become immutable). > > > > > > Personally, I'd go for this one. > > > > > > > I think this might be too confusing for a user. > > > > > > Why? A simple dialog pops up saying "I'm sorry, but this entry is in use > > > by an invoice and cannot be changed.". > > > > > > > - Tax Tables are mutable, however when you post an invoice the > > > > Tax Table code creates an internal, immutable copy that is > > > > linked to the mutable tax table in question. > > > > > > This is really just an enhanced version of (b) as far as I'm concerned. > > > Basically (if you think of it the other way around), when the user goes > > > to change a tax table entry that's been used, the system automatically > > > creates a new version of that entry and isolates the old one. This is > > > just as prone to confuse a user as (b). However, I think any of the > > > other options are also likely to confuse users, just in different ways. > > > > The reason I prefer this last appoach is that: > > > > 1) to the user, the tax table is always mutable. They can change it > > at will, but > > 2) any posted invoices will refer back to the tax table that existed > > when it was posted, and > > 3) all the magic happens under the covers, as far as the user is > > concerned, and > > 4) it will save space by reusing tax-tables as much as possible. > > > > Thanks for your feedback. > > > > -derek > > -- > > Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory > > Member, MIT Student Information Processing Board (SIPB) > > URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH > > [EMAIL PROTECTED] PGP key available > > _______________________________________________ > > gnucash-devel mailing list > > [EMAIL PROTECTED] > > http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-devel > > -- > Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory > Member, MIT Student Information Processing Board (SIPB) > URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH > [EMAIL PROTECTED] PGP key available -- Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory Member, MIT Student Information Processing Board (SIPB) URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH [EMAIL PROTECTED] PGP key available _______________________________________________ gnucash-devel mailing list [EMAIL PROTECTED] http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-devel
