This article covers the different options that are available on accessplanit to change the way that discounts apply to a booking/invoice, and the expected outputs for each scenario.
This article can also be used for testing discounts.
We have two settings that affect the way discounts can be calculated
Apply Discounts to Gross or Net
Config Flag: ApplyDiscountsToGross (typically set to false)
This allows our customers to choose whether the discount is applied to the net amount of the booking, or the gross amount
Costs are advertised inclusive or exclusive of VAT
Account Finance Option: Tax Exclusive
This allows our customers to choose if their costs include VAT or if it is added on top of the advertised costs
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.
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.
Course Cost is Tax Inclusive Net = £8.33 | Course Cost is Tax Exclusive Net = £10.00 | |
£10 discount | Discount covers full £8.33 net | Discount covers full £10 net |
10% discount | Discount = £0.83 | Discount = £1.00 |
£5 discount | Discount = £5 | Discount = £5 |
50% discount | Discount = £4.17 | Discount = £5.00 |
| 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 £8.33 net |
10% discount | Discount covers £0.83 net | Discount covers £1.00 net |
£5 discount | Discount covers £4.17 net | Discount covers £4.17 net |
50% discount | Discount covers £4.17 net | Discount covers £5.00 net |
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