Elxis CMS Forum
Community => Elxis Community => Topic started by: datahell on November 21, 2009, 23:09:46
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I am working on IOS Eshop v2.x and I would like your opinion on a price calculation issue.
Consider the following scenario.
We have a laptop computer that costs 100.00 EUR (price without VAT and discount).
Discount is 0.00 for simplicity.
VAT is 10%.
So, the final price the customer sees is 110.00 EUR (including VAT).
Now, lets say that we give as extra option with this laptop computer a laptop case that costs 20.00 EUR. Note that the laptop case is not an other product, it is a price modifier of the main product.
Which should be the final product price?
a). 110 + 20 = 130.00 EUR (This is the obvious answer - the laptop case' s does not have VAT and discount and is added to the final price)
b). (100 + 20) + VAT = 120 + (120*0.1) = 132.00 EUR (the laptop's case is being added to the net price and the final price is being re-calculated).
I think method (b) is better but the customer will see that 110 + 20 = 132 which is strange, he wont understand it and he will make complaints about the shop's prices.
Here is a third method I thought:
c) (100 + VAT) + (20 + VAT) = 132.00 EUR (the final price is the same as method (b) but we made the laptop's case cost 22 EUR by adding the main product's VAT to it, so the customers sees 110+22 = 132 which makes sense.
I need your opinion in this please. Should the discount and VAT be valid for the product's price modifiers or not?
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B is corect! In sales, that is more important.
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why the laptop-case has no vat?
you must add vat on every single product , unless it is free .. or it is illegal!
vat better to apply on total due ..
100
+20
-----------
120 (-discount)
120 + vat%
-------------
total due
and the discount if present always to the amount before vat is applied .
option a is wrong and c will limit you later on other functions
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:-\ case c maybe(?) is more suitable for products with different vat
but if you want to apply a discount% you will face the problem that this must be done to the amount before vat is applied(none(shoper) wants a discount% on the price with the vat-included)
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why the laptop-case has no vat?
Maybe the shop administrator has included the vat and the discount on the 20EUR of the extra piece.
The discount is an other problem. Should the discount be applied to laptop+case or only to just laptop?
So, ks-net and Ivan you agree that the better solution is b, or c?
Consider an other scenario, the laptop case, was easy as it is a different piece, what about if the price modifier was the colour of the laptop? Laptop (black): 100 EUR, Laptop (white) += 20EUR. In this case I believe we all agree that the final price must be 132 EUR. The problem is when the price modifiers applies on extra pieces.
Note: (b) is how IOS eshop works now.
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First of all we have to consider if the eshop is for retail customers in this case all must be like this :
110 product
+22 product or price modifier
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132 (-discount)
132 vat% icluded
if the eshop is for commercial customers
100 product
+20 product or price modifier
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120 (-discount)
120 + vat% = 132
If a customer wants an invoice the first option must be enable. The second option it will works only for companies with ressellers ( a good idea is the ability to have a resseler category with special discount on his account not generally because the discounts can be different for each customer or with special resseler prices which is stronger from the discount prices)
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IOS Eshop v2.x gives you the option to have different price, VAT and discount for different customer groups (shoppers groups). You can also create unlimited shoppers groups. This is no problem (this feature has been already implemented into the DEV version).
I reached to a final decision. I put a new configuration parameter that sets how you wish the price modifiers to work:
a). VAT and discount are not applied to product's modifiers but only to the main product. (110 + 20 = 130 EUR)
b). Main product's VAT and discount are also applied to product's price modifiers (110 + 22 = 132 EUR).
Option (b) will be the pre-selected one.
Price modifiers set up for a product on IOS Eshop v2.x
(http://wiki.elxis.org/images/8/87/Edit_product_price_modifiers.jpg)
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Option B. For sure not C option, it will make people missunderstand what they will pay for.
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Yes but:
With option b the customer will see this:
110 + 20 = 132
With option c the customer will see this:
110 + 22 = 132
Both b and c options have the same result on the final price but I think c is much more understandable. The only "disadvantage" of option c is that you have set the price modifier to 20 EUR but the client will see 22 EUR as VAT has been applied to this price. Off course as we show prices including VAT to the customer this is not a real disadvantage.
Note: What you are talking about here is valid only for the product's page and for the javascript based calculations. On the cart page the prices are explained enough and VAT is added to the final price of the whole cart.
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I would prefer it to be VERY VERY detailed even from the product page when the customer selects something from the price modifiers.
Also, I would prefer to have the option to set discount & VAT into the price modifiers, different from the product.
What do I mean?
When the customers select the product they will see:
product price (100) + the VAT 19% (19 VAT 19%) = total price (119)
And when they select something extra, they will see:
a) Product name + the price (100) + the VAT 19% (19 VAT 19%) = final price (119)
b) The extra + the price (20) + the VAT 9% (1.8 VAT 9%) = final price (21.8 )
Total cost 140.8
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The discount is an other problem. Should the discount be applied to laptop+case or only to just laptop?
So, ks-net and Ivan you agree that the better solution is b, or c?
reading all this above i will say "c" because it is very common to use different vat on products
as for the discount is a little complex... if it is % ? it will apply % on one product or on the total order? in a any case is different... both cases needed.
if it is standard amount you can apply where ever.. but if % it is more complex.
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Product's price modifiers are always absolute values, not percentage.
Different price/vat/discount for the modifiers will make them extremely complex, so my answer is no in this.
On special cases when you need to do something like that create different products with the extra features pre-included (f.e. sell the laptop with the laptop case included).
I finally implemented solutions (c) and (a). You can select how the system to work (c or a) at eshop's configuration.
The discount is not a different issue as it works exactly as the VAT but applies before the VAT. I did nt used discount in the current example in order for the example to be as simple as possible.