The Calculation Methods Screen is as Follows:
There are 3 different ways of
calculating the Markup prices and Tax amounts for each of the products:
In order to change the calculation method select Calculation Method
from the Options menu which will bring up the following screen.
Note: When you change the method it will affect all prices and not just the current one
The 3 methods available are:
Method 1 – This is the default for the application and calculates both the Tax and the Markup Rates on the Buy Price.
i.e. If the Product has a:
Buy Price of $ 130.00
Tax Rate of 20.00%
Normal Markup Rate of 15.00%
Reseller Markup Rate of 10.00%
Then the:
Normal Tax Amount will be 20% of $130 = $ 26.00
Reseller Tax Amount will be 20% of $130 = $ 26.00
Normal Markup Amount will be 15% of $130 = $19.50
Reseller Markup Amount will be 10% of $130 = $13.00
Method 2 – This method calculates Tax on the Buy Price and the Markup Rates on the Tax and the Buy Price.
i.e. If the Product has a:
Buy Price of $200.00
Tax Rate of 20.00%
Normal Markup Rate of 25.00%
Reseller Markup Rate of 15.00%
Then the:
Normal Tax Amount will be 20% of $200 = $40.00
Reseller Tax Amount will be 20% of $200 = $40.00
Normal Markup Amount will be 25% of ($200+$40) = $60.00
Reseller Markup Amount will be 15% of ($200+$40) = $36.00
Note: For this method that for Ex-Tax prices the markup rates are just calculated on the Buy Price.
Method 3 –
This method calculates Tax on the Buy Price and the Markup Amount and calculates
the Markup Amounts on the Buy Price.
i.e. If the Product has a:
Buy Price of $400.00
Tax Rate of 15.00%
Normal Markup Rate of 20.00%
Reseller Markup Rate of 10.00%
Then the:
Normal Markup Amount will be 20% of $400 = $80.00
Reseller Markup Amount will be 10% of $400 = $40.00
Normal Tax Amount will be 15% of ($400+$80) = $72.00
Reseller Tax Amount will be 15% of ($400+$40) = $66.00
Things to Note:
For Developer License Users - These settings are Global which
means that they are the same for all PriceLists so if you are maintaining
PriceLists that use a different Calculation Method then you will have to
change the setting