locked
Recalculate button incorrectly calculates VAT before discount RRS feed

  • Question

  • Hi, I'd appreciate anyones input.

    I've had a complaint from a customer when they have noted that the Recalculate button on an Opportunity/Order/Quote record appears to calculate the VAT before any discount is applied. This is in breach of the UKs VAT rules whereby VAT should be applied to the discounted price.

    As an example, an Opportunity with one Product @ £100 where VAT is 20% calculates as follows
    Product Totals £100
    Discount £10
    Total VAT £20
    Total Amount £110

    This is (Product Totals + VAT) - Discount
    i.e. (£100 + £20) - £10
    Actually, it should be
    (Product Totals - Discount) + VAT i.e.
    (£100 - £10) + £18 = £108

    Is this something Microsoft would be likely to change? At present the recalculate button cannot be used at all.

    Wednesday, March 27, 2013 9:11 PM

Answers

  • A standard, the Tax fields (which might have been relabelled to VAT in your system) are not calculated automatically. It sounds as though someone has customized your CRM system to calculate VAT, but the logic for the calculation is wrong. You should speak to the person who customized your CRM system and have then adjust the JavaScript or plugin that performs the VAT calculation.

    Neil Benson, CRM Addict and MVP at Slalom Consulting. Find me on Twitter. Join over 20,000 other CRM professionals on the Microsoft Dynamics CRM group on LinkedIn.

    • Proposed as answer by VidhiyaM Thursday, March 28, 2013 11:19 AM
    • Marked as answer by malbon1221 Thursday, March 28, 2013 5:43 PM
    Wednesday, March 27, 2013 11:00 PM
    Moderator

All replies

  • A standard, the Tax fields (which might have been relabelled to VAT in your system) are not calculated automatically. It sounds as though someone has customized your CRM system to calculate VAT, but the logic for the calculation is wrong. You should speak to the person who customized your CRM system and have then adjust the JavaScript or plugin that performs the VAT calculation.

    Neil Benson, CRM Addict and MVP at Slalom Consulting. Find me on Twitter. Join over 20,000 other CRM professionals on the Microsoft Dynamics CRM group on LinkedIn.

    • Proposed as answer by VidhiyaM Thursday, March 28, 2013 11:19 AM
    • Marked as answer by malbon1221 Thursday, March 28, 2013 5:43 PM
    Wednesday, March 27, 2013 11:00 PM
    Moderator
  • Thanks for your response Neil. You're right, I should have worded it as Tax rather than VAT.

    Your comments were helpful, as I've realised a little more about the root of the issue. I understand now that the Tax field on the Opportunity is actually just an addition of the Tax field that exists on each 'Opportunity Product' record within the Opportunity. I agree this is manually completed by the user.

    The problem arises when the customer doesn't want to apply a discount at the Opp Product level (and therefore the Tax within the Opp Product remains based on the full value). They want to use the 'Discount' field provided on the Opportunity itself, so discount the total of all Products. The Recalculate button seems to take the Discount field into account on the Opp record, but it doesn't consider the effect this should have on the Tax field (since as above, this field is just calculated based on each Product record Tax field).

    I understand the issue better, and I guess I would need to add another field "Tax after discount" on the Opportunity, then use that field to calculate the Total Amount.

    Thursday, March 28, 2013 11:11 AM