Calculating Discounts

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)

On this page:

1 Discounting Options
2 Discount Logic
3 Discount Examples
- 3.1 Discount applies to Net of a £10.00 course
- 3.2 Discount applies to Gross of a £10.00 course