http://ofbiz.116.s1.nabble.com/OFBiz-Users-VAT-and-rounding-tp135121p135133.html
I think it'd be great to implement some of these features.
>Hi Si,
>
>I totally agree, what I've done is only very temporary and for a (my)
>special case.
>I can already see some issues coming, for example when you set a promotion
>giving a % on the order total.
>You have for example: (consider a VAT of 10%):
>For a product Product1, net price 100.
>An order containing 1 product product1, and a rebate of 10% on the total.
>
>OrderItem unit_price 100
>OrderAdjsutement type SALES_TAX amount 10 percentage 0.1 comments VAT
>-> Promotion 10% on the order total
>OrderAdjustment type PROMOTION amount -10
>
>So it makes
>Product1 100
>SubTotal 100
>Adjustments -10
>VAT10% 10 in the orderadjustment
>Total 100
>
>In my case this is not the good amount because the VAT should be calculated
>after all rebates have been set, and so give:
>
>Product1 100
>SubTotal 100
>Adjustments 10
>New subtotal 90
>VAT10% should be 9 (because VAT must be calculated after all rebates,
>promotions...etc)
>Total should be 99
>
>Do you think it makes sense or am I out of subject?
>Don't you have also this problem in the states when you set a rebate on the
>total order, as you have a different way of dealing with taxes?
>
>So event with rounding up, I still can see other issues coming, and so
>prefer to keep on staying with gross prices, and then calculate the VAT
>afterwards, which is of course not the best process.
>What I do is:
>Product1(gross) 110
>Subtotal(gross) 110
>Adujstment 10%
>Total 99%
>VAT10% computed afterwards = 9 showed on the order and invoice.
>
>That is the only way I found so far to keep on having the right VAT amount.
>Things will certainly get more difficult when we'll have different products
>with different tax rates...
>
>I'll be happy to work on the implementation you are talking about.
>You are right, the solution of working on OrderAdjustments for informational
>purpose in the case prices contain taxes, and otherwise adding the amount in
>the order item's amount is a good way; here if you do B2B, customers are
>interested by seeing the net price, as they'll get the VAT back (they pay
>the VAT but claim it back from the government), which is not the case when
>you do B2C, where customers are only interested in gross prices.
>
>May be we should modify/add more OrderAdjustments when we run promotions?
>
>Best Regards,
>Manuel
>
>
>-----Message d'origine-----
>De :
[hidden email] [mailto:
[hidden email]] De
>la part de Si Chen
>Envoyé : Thursday, October 06, 2005 2:06 AM
>À : OFBiz Users / Usage Discussion
>Objet : Re: [OFBiz] Users - VAT and rounding
>
>Manuel, David, David, et al -
>
>That's a pretty clever hack, and I'm glad it works for you.
>
>It seems, though, that longer term we'll need to be able to support both
>the US (tax added on top of price) and European (flat price including a
>tax) formats. It seems that it might not be so hard if we do it this way:
>1. Create a new tax type
>2. Additional code which calculates that tax for that type, including
>correct rounding formulae
>3. An added field for OrderAdjustment which denotes whether it should
>be added back to the order item's amounts (in the case of US sales
>taxes) or is there just for informational purposes (in the case of
>European/VAT), since the flat price includes the tax
>4. GL posting should work fine once the correct amounts in
>OrderAdjustment or at most require a small change.
>
>I think it might be nice to break the sales tax calculation code into a
>master which calls several different routines or services depending on
>the tax type, so we can keep the implementation separate or call an
>outside service if it's available.
>
>Just some general ideas. Anybody up for doing this?
>
>Si
>
>Manuel Meyer wrote:
>
>
>
>>Hi All,
>>
>>Further to what I've red and understood in this thread, here is what I've
>>done in order to resolve my issue, which was more a rounding problem rather
>>than a VAT problem:
>>
>>My big concern was that to sell a product of 120 VAT included, I could not
>>enter a net amount with 2 digits of precision giving 120 after having
>>applied 19.6% of taxes, or by entering a net price of 125.43 for a product,
>>I got 150 for 1 product tax included, but 450.01 for 3.
>>
>>So, I've set all the currency entries in the DB to be numeric(18,6) (I am
>>using postgres), and removed all the rounding made in the code (mainly in
>>the OrderServices.getTaxAmount() and OrderReadHelper.calcOrderAdjustment()
>>routines).
>>I am only rounding when displaying amounts to the customer.
>>
>>And since that, I've resolved all my rounding and therefore VAT issues, and
>>the site is a real Swiss clock :)
>>
>>The devil is in the details, so I might have missed something, but it looks
>>like working so far.
>>
>>Best regards,
>>Manuel
>>
>>-----Message d'origine-----
>>De :
[hidden email] [mailto:
[hidden email]]
>>
>>
>De
>
>
>>la part de T E Schmitz
>>Envoyé : Wednesday, October 05, 2005 3:17 PM
>>À : OFBiz Users / Usage Discussion
>>Objet : Re: [OFBiz] Users - VAT and rounding
>>
>>David Garrett wrote:
>>
>>
>>
>>
>>>Out of interest why are there differences in the vatAmount
>>>vatAmount = 16.097 or 16.095 or 16.098
>>>depending on which algorithm you use and on whether you are a retailer or
>>>wholesaler.
>>>
>>>
>>>
>>>
>>The VAT Guide describes several rounding modes (unfortunately fails to
>>be specific enough for invoicing at retailers).
>>
>>For our example
>>gross = £123.45
>>vatRate = 15%
>>vatFraction = 0.1304
>>==> vatAmount = 16.09788
>>
>>Invoicing at line level (B2B)
>>a) round down to nearest 0.1p -> 16.097
>>b) round to nearest 1p or 0.5p -> 16.095
>>
>>For invoicing at retailers, rounding *down* is forbidden:
>>c) round to nearest 0.1p -> 16.098
>>
>>
>>
>>
>>
>>>Thanks for the excellent summary.
>>>
>>>
>>>
>>>
>>Sadly, I seem to spend more time in accounting newsgroups than in Java
>>newsgroups. ;-)
>>
>>
>>
>>
>>
>>
>
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