This article covers the different options that are available on accessplanit to change the way that discounts apply to a booking/delegate, and the expected outputs for each scenario.
Discounting Options
We have two settings that affect the way discounts can be calculated:
Apply Discounts to Gross or Net. This allows you to choose whether the discount is applied to the net amount of the booking/delegate, or the gross amount.
Costs are advertised inclusive or exclusive of VAT. This allows you to choose if your costs include VAT, or if it is added on top of the advertised costs, and can be found in the Account Finance Options area. To learn more about this section, click here.
Discount Logic
When a discount applies to the net value of a booking, the VAT should be recalculated after the discount (see .gov website) based on the remaining net.
Gross based discounts should apply to the total (net and VAT) with no VAT recalculation needed.
Discount Examples
In all below examples we are looking at a purchase of a £10.00 course with a 20% VAT/tax rate.
So for reference, the cost values would be
£10 course
Course Cost is Tax Inclusive
Course Cost is Tax Exclusive
Net
£8.33
£10.00
Tax
£1.66
£2.00
Gross
£10.00
£12.00
The following figures are based on both a tax inclusive & a tax exclusive course cost.
The results are broken down into two tables
Discounts applied to the net value of the booking
Discounts applied to the gross value of the booking.
Four different discounts (£10, 10%, £5, 50%) are used to demonstrate how each scenario should work/calculate.
Discount applies to Net of a £10.00 course
Course Cost is Tax Inclusive
Net = £8.33
Course Cost is Tax Exclusive
Net = £10.00
£10 discount
Discount covers full £8.33 net Tax is recalculated as £0.00 £0.00 to pay
Discount covers full £10 net Tax is recalculated as £0.00 £0.00 to pay
10% discount
Discount = £0.83 New net = £7.50 New tax = £1.50 £9.00 to pay
Discount = £1.00 New net = £9 New tax = £1.80 £10.80 to pay
£5 discount
Discount = £5 New Net = £3.34 New tax = £0.66 £4.00 to pay
Discount = £5 New Net = £5.00 New tax = £1.00 £6.00 to pay
50% discount
Discount = £4.17 New net = £4.16 New tax = £0.84 £5.00 to pay
Discount = £5.00 New net = £5.00 New tax = £1.00 £6.00 to pay
Discount applies to Gross of a £10.00 course
Course Cost is Tax Inclusive
Gross = £10.00
Course Cost is Tax Exclusive
Gross = £12.00
£10 discount
Discount covers £8.33 net Discount covers £1.67 tax £0 to pay
Discount covers £8.33 net Discount covers £1.67 tax £2 to pay (£1.67 + £0.33 VAT)
10% discount
Discount covers £0.83 net Discount covers £0.17 tax £9 to pay (£7.50 + £1.50 VAT)
Discount covers £1.00 net Discount covers £0.20 tax £10.80 to pay (£9.00 + £1.80 VAT)
£5 discount
Discount covers £4.17 net Discount covers £0.83 tax £5 to pay (£4.16 + £0.84 VAT)
Discount covers £4.17 net Discount covers £0.83 tax £7 to pay (£5.83 + £1.17 VAT)
50% discount
Discount covers £4.17 net Discount covers £0.83 tax £5 to pay (£4.16 + £0.84 VAT)
Discount covers £5.00 net Discount covers £1.00 tax £6 to pay (£5.00 + £1.00 VAT)