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Clayton Calleja

Hi,

I have an issue when it comes to discounts. Lets assume that the cost of product A is 100euro(100%) and I add a mark up of 20 percent. So now the selling price is 120Euro. (120%)

Now I want to give 10% discount on this item.

Currently in the pricelist it works it out like this 120X.90 = 108Euro. Its assuming that the selling price is the 100%

While it should be worked out like this 120EuroX110/120 = 110Euro

I don't know if you follow, its more of a mathematical concept. Since the system works in marginal pricing and we work in mark ups. Has anyone encountered this issue.

Thanks in Advance 





  

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Ibrahim Boudmir
Best Answer

Hi, 
You apply tax on the final price after subtracting the discount and not before. (legal point of view)
So : 
Applying discount first : amount = 100- 100*10% = 90
then apply tax to 90. final_amount = 90+90*20% = 108

Hope this helps.

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