GST Inclusive Pricing/Discount Enhancements

Deployed 3-Apr 2020 9:00AM CDT (14:00 UTC)

RepairQ 1.16.17 (Australia Only) GST Tax Calculation Updates

The calculation sequence, rounding methodology, and precision of persisted values has been designed in RepairQ to comply with the guidelines provided by the Australian Tax Office. The user interface allows the user to enter Unit Price (In GST), Discount (In GST), and Ticket Discount (In GST).

In the RepairQ User Interface, After Tax is “In GST” and Before Tax is “Ex GST”.

Examples

The examples below illustrate a scenario of selling an item for $100 including GST.  The first scenario illustrates a full price sale while the second scenario illustrates a sale discounted by $10.

Example 1:  Sell an item for Unit Price (In GST) $100

Unit Price (in GST)

$100.00

Price entered by sales rep.

Unit Price (ex GST)

$90.91

Calculation 100.00 / 1.1

Quantity

1

Qty entered by sales rep.

GST

$9.09

Calculation (100.00 / 1.1) * 0.1

Line Total

$100.00

Calculation (90.91 * 1) + 9.09

 

Example 2:  Sell an item for Unit Price (In GST) $100, less $10 discount

Unit Price (in GST)

$100.00

Price entered by sales rep.

Unit Price (ex GST)

$90.91

Calculation 100.00 / 1.1

Quantity

1

Qty entered by sales rep.

Discount (in GST)

$10.00

Discount entered by sales rep.

Discount (ex GST)

$9.09

Calculation 10.00 / 1.1

GST

$8.18

Calculation ((100.00 - 10.00) / 1.1) * 0.1

Line Total

$90.00

Calculation ((90.91 - 9.09) * 1) + 8.18

Screen_Shot_2020-04-03_at_3.07.25_PM.png

Special Considerations for Bundles

When bundling items on a Ticket, the discount and taxable amounts are distributed among the parent and children items in the bundle. This is necessary because, while uncommon in Australia, it is possible to have a bundle that includes both taxable and non-taxable items, or includes items with different tax rates and/or surcharge amounts.

The tax rate settings for each location determine whether the parent and children are taxable, and whether the children are taxable based on the cost (e.g. supply price) or the price (e.g. retail price). The taxable amount for bundled children is most commonly set to use cost (e.g. supply price) which is entered on the PO when ordering/receiving parts into inventory.  

As a general rule, the total taxable amount for the bundle will never exceed the discounted sale price, even if the total cost of all children under the parent exceeds the discounted sale price of the bundle. For example, if you offer a price of $100 to repair a phone and you end up bundling three parts which cost $50/each under the repair, the total taxable amount will be capped at $100.

Enhanced User Interface

In addition to solving the reported problems, the user interface was enhanced to simplify price and discount entry on the Ticket.

Unit Price Editor

The new unit price editor allows the user to click on the unit price field and enter the Unit Price (In GST) or (Ex GST). Using the new (In GST) method, the (Ex GST) amount will be calculated as Unit Price (In GST) / 1.1. For display purposes, the Unit Price (Ex GST) will be rounded to the nearest cent. However, the unrounded figure will be utilized when calculating Discount and GST amounts.

Screen_Shot_2020-04-03_at_3.08.41_PM.png

Discount Editor

The new discount editor allows the user to click on the discount field and enter the Discount (In GST) or (Ex GST). Using the new (In GST) method, the (Ex GST) amount will be calculated as Discount (In GST) / 1.1. For display purposes, the Discount (Ex GST) will be rounded to the nearest cent. However, the unrounded figure will be utilized when calculating GST.

Screen_Shot_2020-04-03_at_3.10.15_PM.png

Ticket Discount

The ticket discount has been expanded to allow the user to choose whether applying a percentage or fixed amount discount. Furthermore, when applying a percentage discount, the default will be to treat the entered amount as (In GST) for stores that are configured for tax inclusive pricing. When applying a fixed amount discount, the user will choose whether the amount is (In GST) or (Ex GST).

Screen_Shot_2020-04-03_at_3.12.19_PM.png

Definitions

Unit Price

The Unit Price displayed for each ticket item represents the GST-exclusive value for the sale. The displayed value is rounded to the nearest cent, however the GST amount is calculated based on the unrounded figure, calculated as:
Unit Price (In GST) / 1.1

Qty / Hrs

The Qty / Hrs displayed for each ticket item represents the quantity of units in most scenarios. The exception being fixed labor items. Fixed labor items have an effective quantity of 1, but the displayed value represents the amount of hours it takes to complete the repair, rounded to hundredths of one hour.

Discount

The Discount displayed for each ticket item represents the GST-exclusive discount value for the sale. The displayed Discount is rounded to the nearest cent, however the GST amount is calculated based on the unrounded figure, calculated as:
Discount (In GST) / 1.1

GST/Tax

The GST/Tax displayed for each ticket item represents the GST amount payable for the sale. The GST amount is rounded to the nearest cent. The GST amount is calculated as:

((Unit Price (In GST) x Qty) - Discount (In GST)) / 1.1

Line Total

The Line Total displayed for each ticket item represents the total amount payable for the sale.  

The Line Total amount is calculated as:
(Unit Price (In GST) x Qty) - Discount (In GST) 

The equivalent Ex GST calculation is as follows:
(Unit Price (Ex GST) x Qty) - Discount (Ex GST) + GST

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