Order calculations

Hi Daniel,

Thats ok!
Maybe that was a bad choice of words, but my english is not so good - Sorry about that!

Regards,
Leffe

i'm not sure you need to apply tax to the shipping if you say its free shipping.

I'm working on restucturing the totals.

I get the point of calculating the totals in a different way. I'm thunking of having the checkout confirmation displaying items without tax and having subtotal displayed without tax.

Hi Daniel,

We are going to use both free and normal shipping.

Having the checkout and subtotal displaying without tax works nicely for me, this is actually how I prefer to display the checkout steps, As long as all totals including total tax is displayed and summed up in the final step.

Regards,
Leffe

The subtotal already does display without tax if you set "Display prices with tax" to NO

Hi Qphoria,

Yes I know, but that affects the whole frontend. I want the product prices to show incl tax.
I was talking about the prices and totals during checkout process.

/Leffe

One of the reasons I included the coupon to discount tax was if someone had wanted a refund and instead was given a coupon for the same amount. Does that mean tax still needs to be added after the coupon discount?


all bugs are fixed huh?

There is still a bug in the way coupon and tax are calculated. It's
actually a bug that was found in 1.x, but I see its also in 0.x

Example:
Product 1: 100.00
Tax: 5%
Total: 90.50

Adding a coupon yields:
Product 1: 100.00
Coupon: 10%
(100.00 * 0.05 = 90.00)
Tax: 5%
(90 + (100.00 * 0.05)) <----- wrong
Total: 95.00


But it should be using the newly coupon'd price to calculate tax:
Product 1: 100.00
Coupon: 10%
(100.00 - (100.00 * 0.05) = 90.00)
Tax: 5%
(90 + (90.00 * 0.05)) <----- right
Total: 94.50

Daniel wrote: all bugs are fixed huh?

Or you could just read that above too...
Ill go ahead and add quote tags to your post for you.

do i feel any tension here? i can just hope that you two guys are making fun. Cuz if i wanted to do serious business - what btw a shopping cart should be used for - i wouldn't use software where devs act like two 6 year old.

we're 8 yr olds thank you very much

Hi Daniel,

Regarding:

One of the reasons I included the coupon to discount tax was if someone had wanted a refund and instead was given a coupon for the same amount. Does that mean tax still needs to be added after the coupon discount?

Yes, the tax should be calculated after the refund coupon been added. The tax should only be added to remaining amount, because tax has already been paid in the refunded products. Otherwise the customer pais tax twice on the refunded amount.

It would also be great to be able to choose if a discount coupon should calculate on the order total, including shipping, fees and so on, or if the discount calculates on the product total only.

Best regards,
Leffe

Ok i get that part.

What about this situation:

A customer goes to the a shop selling food and some electronics. He buys some fruit and some blank CD's. he pays a 5% tax rate for the food and 17.5% for the electronics. The total comes to £20. He than uses a £10 coupon.

So I would think the coupon would be take from the total if its a fixed amount and if its a percentage it should be taken off each product before taxes.

Is this correct?

Hi Daniel,

The coupon, regardless of percentage or amount should always be done befor tax is added. If not the tax specification is wrong and the Swedish IRS would complain about the tax declaration we send to the goverment. The tax should alwas be calculated on the actual amount the customer pays

In your examle it should look like this (I also added a shipping cost using 17.5% tax):
Food: £105 (£5 tax included)
Electronics: £1,175 (£175 tax included)
---------------------------------------------
Subtotal : £1,280 (£180 tax included)
Shipping: £11.75 (£1.75 included)
--------------------------------------------
total: £1,291.75

==================================
The specification should look like this:
==================================

Food: £105
Electronics: £1,175
------------------------------------
Subtotal : £1,280

Shipping: £11.75

Tax 5% included with: £5
Tax 17.5% included with: £176.75
------------------------------------
Total: £1,291.75

==================================
Or:
==================================

Food: £100
Electronics: £1,000
------------------------------------
Subtotal : £1,100

Shipping: £10

Tax 5%: £5
Tax 17.5%: £176.75
------------------------------------
Total: £1,291.75

==================================
Now adding a -10% coupon on the total order value based on the example showing everything excl tax would give this:
==================================

Food: £90
Electronics: £900
------------------------------------
subtotal £990

Shipping: £9

Tax 5%: £4.5
Tax 17.5%: £159.075
------------------------------------
Total: £1,162.575

Best regards,
Leffe

Daniel wrote:Ok i get that part.
So I would think the coupon would be take from the total if its a fixed amount and if its a percentage it should be taken off each product before taxes.

Is this correct?

No. At least I don't think so. I had that same thought when I was working on this. What if you wanted to take $5.00 each product? we can't assume that a fixed amount only applies to the cart-level.

In 0.x,we changed it to:

Per-Cart Coupons:
- Per-cart is enabled by de-selecting all products in the available products list.
- Take the total of all products in the cart using the product price, not cart total.
This removes the tax from the equation all together no matter if it is on or not.

Per-Item Coupons:
- Per-item is enabled by selecting at least one item in the available products list.
- Take the total of each item, checks if the product in cart is available for the
coupon, then calculates the coupon on the cart product price. Once again tax is out
of the equation all together.

This keeps tax out of the picture while the coupon is applied to either a cart-wide coupon, or an individual coupon, regardless of percentage or fixed. Tax should come at the end, always.

Even for a mixed tax cart:


Per-Cart Coupon:
----------------------------------------------
Food1: $10.00
Electronic1: $20.00
Cart-wide Coupon: 1%
Shipping: $5.00
Food1-tax: 5%
Electronic1-tax: 10%

Apply coupon to each:
Food1= $10.00 * 1% = $9.90
Electronic1 = $20.00 * 1% = $19.80

Then apply tax to each:
Food1 = 9.90 + 5% = 10.40
Electronic1 = 19.80 + 10% = 21.78
Shipping = 5.00 + 10% = 5.50 (if shipping tax is enabled)

Total w/tax = 37.68
--------------------------------------------------

Per-item Coupon:
----------------------------------------------
Food1: $10.00
Electronic1: $20.00
Food1 Coupon: 1%
Electronic1 Coupon: 2%
Shipping: $5.00
Food1-tax: 5%
Electronic1-tax: 10%

Apply coupon to each:
Food1= $10.00 * 1% = $9.90
Electronic1 = $20.00 * 2% = $19.60

Then apply tax to each:
Food1 = 9.90 + 5% = 10.40
Electronic1 = 19.60 + 10% = 21.56
Shipping = 5.00 + 10% = 5.50 (if shipping tax is enabled)

Total w/tax = 36.96
----------------------------------------------

Which is more useful? coupons or gift vouchers?

Coupons give a discount, but gift vouchers are taken as part payment.

Should we have both?

I dunno..
I mean by definition they are different... but I think they'd be used the same in the case of ecommerce. They both deduct from the product price the same way. So I don't really see a need. But maybe I'm overlooking something

If its a gift voucher it should be regarded as cash and maybe should shown just before the total or maybe after.

Just to throw my opinion in, I think you should do both. Have the coupons (cart-wide or item-wide) apply before any tax, and have gift cards/vouchers that apply to the total as if it was cash.

You could probably use the same table in the database for both, and just have one column that flags it as being a coupon or voucher. ..

But since we've established that coupons need to apply to the product total before shipping and tax, it changes nothing

2 x Product 1: $5.00
-
Cart Total: $10.00
Coupon: -$2.00
(New Cart Total: $8.00)
Shipping: 5.00
Tax: 4%

Total: ($8.00 + $5.00) + 4% = $13.52

-----------------------

2 x Product 1: $5.00
-
Cart Total: $10.00
Gift Voucher: -$2.00
(New Cart Total: $8.00)
Shipping: 5.00
Tax: 4%

Total: ($8.00 + $5.00) + 4% = $13.52

Your right. Coupons will have to be handled from the cart.

I just don't want to add 2 systems for coupon and voucher codes.

Heres a UK site selling vouchers:

http://www.highstreetvouchers.com/gift-vouchers/argos

A voucher is part payment so it should be fixed rate only.

I'm going to add the voucher code to the payment page.

While I agree that a coupon should be applied to the product, I am of the opinion that a "gift voucher" should be applied after all other charges (including taxes and shipping), as the purpose of a gift voucher is to reduce the overall cost to the customer.