Calculating tax in purchase orders

Hi there,

Thank you very much for your post.

ATUM adapts the WooCommerce settings and POs work the same way as WC orders.

If you add to WC settings that you are entering prices inclusive of VAT, WooCommerce will thing every price is VAT inc. Please, read the WooCommece documentation for taxes.

Hope this helps.

Pavel

Thank you

That’s fine when we are selling products as VAT is always added but when are raising purchase orders for suppliers (each supplier has different VAT requirements)

Please advise!

This is all WooCommerce settings and ATUM Purchase Orders are based on the WooCommerce manual order interface.

So, let me try to help:

1. Go to WC settings and to ‘Tax’ tab section. (if you have not activated taxes, you can do so in General tab. “Enable Taxes”.

2. Within the Tax tab:
– select NO, I will enter prices exclusive of tax.
– select Display prices in the shop including tax.
– chose the settings suited for your shop.

3. Go to Standard rates and create all taxes you use.

4. For setting up correct tax of products showing in the front end. Normally standard rate you set for your shop.

Now within the PO.

Add a product and press the Add Tax button. There you have the option to chose what tax rate. Remember it will show you the options you have setup in step 3.

Hope this helps.

Pavel

WooCommerce Cost of Goods documentation defines following: “You can add a cost to your products while editing them, and this should only be your cost of producing the good, and should not include tax or shipping.”.

Please find the documentation here: https://docs.woocommerce.com/document/cost-of-goods-sold/

ATUM’s should handle Cost of good prices without tax. Please consider to fix this issue.

Hi eemilkraft,

Thank you very much for your reply to this topic.

Please, understand that we do extend the free WooCommerce plugin. We do not and plan not to support or use the WC Cog paid extension. The COG fields nor the documentation is in our interest. We think that it is too expensive for what it offers. Our team plans to release its own COG addon later in the dev stage.

Hope you understand where we are coming from.

Best Regards,

Pavel

Thank you Pavel for a quick response!

I took the WC Cog extension for an example as it’s widely used and they have decided that the Cost of Good field should be always without VAT.

The problem with current ATUM’s “Purchase price” field is that as we are a B2C business we want to price our selling prices inclusive of VAT. Nevertheless when we buy the items from the suppliers we don’t pay VAT as it’s B2B trade inside the EU. That means our real purchase orders never include VAT.

• This reply was modified 6 years ago by eemilkraft.

Hi there,

You should be able to set this up within the WC tax settings.

Purchase orders adapt this setting so if you tell WC that you enter prices VAT exclusive it will show them in POs. For the front end set prices inclusive of standard VAT rate. Done

Pavel

Hi Pavel

As we are selling to consumers we prefer to enter prices VAT inclusive. This way we can price our products for example 12,90 euros (VAT24%). Otherwise we have to calculate VAT0 prices manually and they look something like this 10,4032258065 euros (VAT0%).

It would be great if I could choose whether I want that ATUM handles prices VAT inclusive or exclusive.

Best regards,
Eemil

• This reply was modified 6 years ago by eemilkraft.

Hi there,

Thank you very much for your reply.

We have premium Purchasing addon coming late 2019. That will be able to handle any tax you throw at it.

The free version may get some tax options at the same time, but we have not yet decided what options yet so can not confirm.

Hope this helps.

Pavel