I’m creating a template of taxes and charges to reflect charges from selling on an e-commerce platform. I have 2 charges: one at 2.2% and another at 4%, I created 2 lines and chose the Type: On Net Total. Those charges are cumulated and are included in the Basic Rate.
When selecting the Sales Taxes and Charges Template, I got the 2 lines of charge appear but the amounts seems wrong to me: 2.2% of the Net Total and the 4% of the Net Total are wrong. I couldn’t find how those amounts are calculated. Please see the screenshot.
Could someone let me know if it’s a bug or there is a calculation method that I missed to understand?
It’s also confusing here the way it calculate the charges when setting base on the Net amount. In my case here the total is 244800, and I have 2 charges: one at 2.2% of the Net total and the other at 4% of the Net total. So if I understand the Net total = Total - taxes and charges. But here the charges are based on the Net total… So how it does the calculation?
244800 - (2.2% * 244800) - (4% * 244800) ?
In any case I couldn’t get the amounts the system gave me in the table…
Also is there anyway to add a new option let’s say Based on Grand Total instead of based on Net Total ?
Hi @Neha_Agarwal, it is NOT fixed. What I did is just to create another template and table of charges to display e-commerce fees included in the sales order so the Accounting department would understand.
I think there’s definitely something wrong here, but I’m not sure what it is. What’s strange is that the screenshot above shows correct numbers for totals but incorrect numbers in the Amount (VND) column. That’s apparent because the numbers don’t even add up:
Notice that the totals are the same but the amounts are not. I’m not sure if this is a bug that has been fixed since OP posted or if there’s something odd about how OP’s system is setup. In any case, in keeping with your math above, Net is calculated correctly 244,800 / 1.062, but the individual amount fields are not correct.
Thanks for reverting back on the topic and for the explanation. The individual amount are indeed the main concern. I’m trying to use this Tax and Charge to apply charge fees from e-commerce platform like Lazada and Shopee, which will help the accounting department to verify numbers against the invoices from those platforms. So I would need the exact matched amounts…
If it is working for you, that’s great. I was not able to produce the odd numbers that you were seeing, which makes me think that the “proper” method should work for you too, but if you’re happy with what you’re doing no need to change of course. Good luck!