Choosing the Calculation Method 

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