1.5.4 Specific Price discount calculation is wrong / confusing

[outre99]

Got a product priced at 950 pre tax and 1016.50 after 7% sales tax.

The prices on the site are displayed without taxes to keep them nice and pretty.

 

In order to offer a discount from 950 to 900 on the product above I went to Specific Prices and created a new rule. I noticed that the discount field states that "The discount is applied after the tax", which makes things very confusing.

 

I set the discount to be 116.50 = 1016.50 - 900. But that resulted in the discounted price of 841.12

So i thought that the discount actually is applied before taxes so I tried discounting by 50 = 950-900, which resulted in the price of 903.27.

Which doesn't make sense either.

 

So the questions are:

1. What is it really doing?

2. Why would a specific price rule be hard coded to be applied after taxes? It makes no sense especially in the situations when the store doesn't include taxes in the displayed prices. It should be customizable to be applied before or after taxes.

[olea]

Do you have ecotax for this product ?

[outre99]

No, eco tax is off. Thanks for the suggestion.

I think i figured it out.

In the example before i needed to discount pretax 950 to 900.

To do that i created a specific price and set it to discount 53.50 = 50 + (50%7) which is the difference between 950 and 900 plus 3.50, which is exactly 7% of 50. So it does make sense but a more elegant solution would be to allow the discount to be applied prior to taxes.

[tdr170]

The Discount applied after tax only applies to discounts using an amount, if you use a percent discount then the discount is correct.

 

I have already created a report about this on the forge.

 

I to do not understand why discounts are applied after tax when using amount to discount a product price,

since when do we pay tax on what we might have spent but what we actually spend on a product.

 

You can add your name to the report here

 

http://forge.prestas...owse/PSCFV-8996

Edited April 30, 2013 by tdr170 (see edit history)

[bellini13]

There are certain cases where tax applies to the pre-sales amount.  For example, if it is a manufacturer rebate. 

 

If a TV is normally $2000, but the manufacturer is offering the retailer an $800 rebate, then the customer would only have to pay $1200.  However some state laws say that the "amounts paid by a manufacturer to a retailer to reimburse the retailer for the value of the manufacturer coupon are included in the retailer’s gross receipts".

 

So in this case the retailer is receiving the full $2000 dollars, and would have to pay sales tax on the full retail price.  So the retailer is allowed to collect sales tax on the pre-sales price.

[tdr170]

Well that may be but never heard of that one, anyway the specific price amount does not calculate properly and the tax is then added again in the cart. Also this I believe only really applies to rebates not sales, If we were offering a manufacturers rebate we would charge the full amount and issue a rebate coupon. But that is not what we are trying to do, we just want to be able to set a sale price based on a amount off the retail price. Also if this were the case then why would % off the price not have the same stipulation of tax.

If using a rebate we would not have to use a specific price but would place a rebate logo on the item.

[bellini13]

there are many types of rebates, you likely are referring to mail-in rebates.  Many manufacturers offer rebate coupons or instant rebates.  This may not be the case for you, but it may be the case for others.

[outre99]

@bellini13

actually what you're saying supports my initial point that it would be a better solution for Presta to allow the user to specify how to apply the discount: before or after tax.  The current inconsistency between the discount based on the absolute amount vs % is confusing and unnecessary.

[A-Z Hosting]

If they want a rebate module they should make one. This has my customers IRRATE and me with them. People in California are reporting merchants for over taxing and we don't even get a checkbox to turn it off.  This is one of those times when Prestashop makes themselves look like CubeCart while Magento stands over there and laughs.  The eCommerce playground is a rough place.