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[IMP] Taxes: fix tax computation / included in price
task-5094417 At the moment, the section for the `Percentage of Price tax included` tax computation doesn't distinguish itself enough from the 'Included in Price' option which people usually want. Percentage of Price Tax Included taxes are very rare and only used in countries where tax rates are expressed as a percentage of the tax-included total. We also take the opportunity to improve the description of the `Percentage of Price` computation type and the `Included in Price` option.
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‎content/applications/finance/accounting/taxes.rst‎

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@@ -87,45 +87,108 @@ Tax computation
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The tax has a fixed amount in the default currency. The amount remains the same, regardless of the
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sales price.
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.. example::
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A product has a sales price of $1000, and we apply a $10 *fixed* tax. We then have:
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.. example::
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A product has a sales price of $1000, and we apply a $10 :guilabel:`fixed` tax. We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 10 | 1,010.00 |
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+-------------+-------------+----------+----------+
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 10 | 1,010.00 |
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+-------------+-------------+----------+----------+
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- **Percentage of price**
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The *sales price* is the taxable basis: the tax amount is computed by multiplying the sales price
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by the tax percentage.
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The tax rate is a percentage of the **tax-excluded** subtotal.
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.. example::
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A product has a sales price of $1000, and we apply a *10% of Price* tax. We then have:
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The exact tax computation depends on the :ref:`taxes/included-in-price` field, which determines
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whether the sales price should be treated as tax-excluded or tax-included:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 100 | 1,100.00 |
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+-------------+-------------+----------+----------+
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.. tabs::
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.. tab:: Tax-excluded
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If :guilabel:`Included in Price` is unchecked, the computation is :math:`\text{tax amount}
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= \text{sales price} \times \text{tax rate}`.
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.. example::
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A product has a sales price of $1000, and we apply a 10% :guilabel:`Percentage of Price`
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tax that is not :guilabel:`Included in Price`. We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 100 | 1,100.00 |
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+-------------+-------------+----------+----------+
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.. tab:: Tax-included
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If :guilabel:`Included in Price` is checked, the computation is :math:`\text{tax amount} =
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\text{sales price} \times \frac{\text{tax rate}}{1 + \text{tax rate}}`.
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.. example::
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A product has a sales price of $1000, and we apply a 10% :guilabel:`Percentage of Price`
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tax that is :guilabel:`Included in Price`. We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 909.09 | 90.91 | 1,000.00 |
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+-------------+-------------+----------+----------+
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- **Percentage of Price Tax Included**
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The **total** is the taxable basis: the tax amount is a percentage of the total.
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The tax rate is a percentage of the **tax-included** total.
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.. example::
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A product has a Sales Price of $1000, and we apply a *10% of Price Tax Included* tax. We then
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have:
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The exact tax computation depends on the :ref:`taxes/included-in-price` field, which determines
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whether the sales price should be treated as tax-excluded or tax-included:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 111.11 | 1,111.11 |
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+-------------+-------------+----------+----------+
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.. tabs::
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.. tab:: Tax-excluded
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If :guilabel:`Included in Price` is unchecked, the computation is :math:`\text{tax amount}
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= \text{sales price} \times \frac{\text{tax rate}}{1 - \text{tax rate}}`.
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.. example::
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A product has a sales price of $1000, and we apply a 10% :guilabel:`Percentage of Price
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Tax Included` tax that is not :guilabel:`Included in Price`. We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 1,000 | 111.11 | 1,111.11 |
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+-------------+-------------+----------+----------+
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Note that the real tax rate in terms of the tax-excluded price is
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:math:`\frac{111.11}{1000} = 11.111\%`.
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.. tab:: Tax-included
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If :guilabel:`Included in Price` is checked, the computation is :math:`\text{tax amount} =
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\text{sales price} \times \text{tax rate}`.
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.. example::
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A product has a sales price of $1000, and we apply a 10%
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:guilabel:`Percentage of Price Tax Included` tax that is :guilabel:`Included in Price`.
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We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 900 | 100 | 1,000.00 |
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+-------------+-------------+----------+----------+
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Note that the real tax rate in terms of the tax-excluded price is
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:math:`\frac{100}{900} = 11.111\%`.
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.. warning::
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This tax computation is rarely used and only useful in countries (e.g. Brazil, Bolivia) that
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quote tax rates as a percentage of the tax-included total.
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For the more usual need to compute tax amounts from a tax-included price, use the
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:guilabel:`Percentage of Price` tax computation with the :ref:`taxes/included-in-price`
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option.
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- **Python code**
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:guilabel:`Python Code` defines the amount of the tax, and :guilabel:`Applicable Code` defines if
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the tax is to be applied. The formula is found at the bottom of the :guilabel:`Definition` tab.
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.. example::
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:guilabel:`Python Code`: `result = price_unit * 0.10`
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:guilabel:`Applicable Code`: `result = true`
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.. example::
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:guilabel:`Python Code`: `result = price_unit * 0.10`
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:guilabel:`Applicable Code`: `result = true`
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.. _taxes/active:
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@@ -256,19 +319,22 @@ invoice line.
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Included in price
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~~~~~~~~~~~~~~~~~
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With this option activated, the total (including the tax) equals the **sales price**.
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With this option activated, the tax will treat the sales price on which it is applied as a total
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including the tax amount. The tax computation will split the sales price into a base amount and a
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tax amount. This makes it suitable for B2C sales in most countries where prices are quoted
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tax-inclusive.
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`Total = Sales Price = Computed Tax-Excluded price + Tax`
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.. example::
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A product has a sales price of $1000, and we apply a *10% of Price* tax, which is *included in
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the price*. We then have:
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A product has a sales price of $1000, and we apply a 10% :guilabel:`Percentage of Price` tax
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with :guilabel:`Included in Price` checked. We then have:
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+-------------+-------------+----------+----------+
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| Product | Price | Tax | Total |
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| sales price | without tax | | |
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+=============+=============+==========+==========+
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| 1,000 | 900.10 | 90.9 | 1,000.00 |
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| 1,000 | 909.09 | 90.91 | 1,000.00 |
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+-------------+-------------+----------+----------+
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.. note::

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