Author Topic: How to setup business model like this  (Read 16393 times)

talenat

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How to setup business model like this
« on: December 06, 2012, 04:39:04 am »
Hi to all,
I need to setup a business model and need some help from experienced SambaPOS users.
In Croatia which is my country we have a two tax values and some products have only one but some have two at the same time.
This means that for some products I have one tax value (25%) and the other (3%) which are going from the same base price and then added on top of base price gives final product price.
So that is my first question.
How to handle that in SambaPOS.
Then I need to have tax report on bill itself where it should be visible how much is charged by 25(%) and how much by 3% together with the values of taxes.
So how to handle that on the bill report?
I need to have a number of waiters that are at the same time cashiers so before each bill print they need to select who is printing a bill.
When they select who is printing their data (first name,last name and personal identification number) needs to be printed on the bill (law requirement).
How to handle that?

I am sorry if some of this questions are already answered but I didn't find them so just point me to that thread.

emre

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Re: How to setup business model like this
« Reply #1 on: December 06, 2012, 05:01:37 am »
Defining two tax values to a single product is not possible. I don't know how tax rules works in your country but for some cases handling it might be possible.

For example if it fits to your case you can define product based taxes like normal tax and add a ticket based tax by configuring a service template. Normally we use it for calculating servicing amounts but it is possible to configure multiple service templates for a single ticket and if you properly name it you can use it for calculating tax too. But it will be a fixed rate amount for whole ticket. Not product based.

I hope it helps.

Edit: Sorry I've just realized we are talking about V3. In V3 service templates renamed to calculation templates.
« Last Edit: December 06, 2012, 05:07:39 am by emre »

talenat

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Re: How to setup business model like this
« Reply #2 on: December 06, 2012, 06:57:33 am »
Emre,
I do not think my country is the only one with such  tax system so extending tax calculation in SambaPOS would be desirable.
Let me explain.
For some products like (soft drinks, alcohol drinks) we have a local tax and state tax.
That means on product price X is added 3% of local tax and on same price X is added 25% of state tax.
Then you add x + (x*0.03) + (x*0.25) = Final price which is charged to customer
Or we can use FINAL PRICE and reverse calculation to get each tax.
Then on each bill we need to have recapitulation of amount that was charged with 25% and with 3% together with total tax amount for each.
Without this SambaPOS is not usable in Croatia.


emre

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Re: How to setup business model like this
« Reply #3 on: December 06, 2012, 09:46:01 am »
Does both tax rates varies by product?

talenat

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Re: How to setup business model like this
« Reply #4 on: December 06, 2012, 11:27:23 am »
Depending of region or city local tax can be from 1% to 3% and state tax is 25% at the moment.
Coffee doesn't have local tax but only 25% state tax while coca-cola have both taxes.
So basically percentage is always the same and doesn't change until government decides otherwise.
Does that answer your question ?

emre

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Re: How to setup business model like this
« Reply #5 on: December 06, 2012, 04:01:38 pm »
* Do you have products that does not have %25 state tax?
* Does menu prices includes both taxes? For example what do you say when the price of pizza asked?
« Last Edit: December 06, 2012, 04:06:42 pm by emre »

talenat

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Re: How to setup business model like this
« Reply #6 on: December 06, 2012, 06:29:23 pm »
No we do not have a product without 25% state tax.
For pizza we only have 25% state tax and that is for all foods.
Local tax is applied only to soft drinks, alcohol drinks, vines, beer and cigarettes.

emre

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Re: How to setup business model like this
« Reply #7 on: December 08, 2012, 06:21:39 am »
How do you calculate taxes from final price if both taxes applies? For example what will be the tax amounts for 10€ alcohol drink?

talenat

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Re: How to setup business model like this
« Reply #8 on: December 08, 2012, 04:59:32 pm »
Lets define variables like this:

FP - final price
ST - state tax percentage
STa - state tax amount
LT - local tax percentage
LTa - local tax amount

If FP = 10€  ST = 25% and LT = 3%

Formulas for calculation are:

STa = (FP * ST) / (100 +ST + LT)
LTa =(FP * LT) / (100 + ST + LT)

From that formulas we will have

STa = (10 * 25 ) / (100 + 25 + 3) = 1.95 €
LTa = (10 * 3 ) / (100 + 25 + 3) = 0.23 €

If there is only state tax (ST) then LT = 0 and this backward method is still valid for calculation.

As you can see adding additional field to tax should not be a big problem since those who don't have additional tax on products will have that field 0 and calculation is correct.


emre

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Re: How to setup business model like this
« Reply #9 on: December 09, 2012, 08:55:36 am »
Good I'll check how can we apply it and let you know now the progress. Thanks.

emre

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Re: How to setup business model like this
« Reply #10 on: December 11, 2012, 03:05:03 pm »
Hi talenat. I'm trying to find a solution and most probably I'll have to change how we handled tax. To be able to understand it how it works in your country I have to ask some more questions.

What happens when we create a menu that contains a pizza and a drink? We handle menus on a single product called "Pizza Menu" with a single price and it decreases inventory as it listed on it's own receipt. Normally pizza menu costs less than items total when sold seperately.

How do you handle modifier taxes? For example some users create "+ chips" modifier to "beer" and add x price to beer price when selected. We use modifiers there because when chips bought with beer it's price will be less than normal price. Think it as a promotion.

How do you calculate discounts? Should it decrease the final price or the net price? For example if we sell €10 alcohol drink and add %10 discount how we'll calculate tax?

How should we handle taxes for servicing fees? For example some restaurants adds %5 servicing amounts to tickets. What will be the tax details for €10 drink sale + %5 servicing amount?

We have another case for tips. Do you pay tax for tips? How should we handle it?

« Last Edit: December 12, 2012, 09:13:03 am by emre »

talenat

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Re: How to setup business model like this
« Reply #11 on: December 12, 2012, 09:17:00 pm »
Hi Emre,
You have the right questions so let me try to explain.

Quote
What happens when we create a menu that contains a pizza and a drink? We handle menus on a single product called "Pizza Menu" with a single price and it decreases inventory as it listed on it's own receipt. Normally pizza menu costs less than items total when sold seperately.

If we can't separate food from drinks and treat it as one product (Pizza Menu) than we need to calculate state tax and local tax on the final price of that product. That is why we don't use that combination as a single product but separate Pizza and drinks on the bill (why pay bigger tax ?).

Quote
How do you handle modifier taxes? For example some users create "+ chips" modifier to "beer" and add x price to beer price when selected. We use modifiers there because when chips bought with beer it's price will be less than normal price. Think it as a promotion

This issue is similar like above and thus we have that separated on the bill. For cases like this and Pizza Menu we can use different price list for separate products (like for any promotion).
The thing is that tax is always calculated from final price that customer pays and if we can't separate products which only have state tax from those that also have local tax than we need to pay both taxes for that product.

Quote
How do you calculate discounts? Should it decrease the final price or the net price? For example if we sell €10 alcohol drink and add %10 discount how we'll calculate tax?

Discounts are decreasing final price. If we give 10% discount on 10 € price than final price is 9 € and on that price taxes are calculated. If there is a number of products on bill discount and taxes are calculated on every product to get total for both price and taxes.

Quote
How should we handle taxes for servicing fees? For example some restaurants adds %5 servicing amounts to tickets. What will be the tax details for €10 drink sale + %5 servicing amount?

We have another case for tips. Do you pay tax for tips? How should we handle it?

Every single product or service has state tax so servicing fees and tips have state tax if they are on the bill.
For that reason nobody in Croatia is putting a tip fee on the bill and rare are using servicing fees.
Tip is something that is left for customer to decide and servicing fee is inside a final price (indirectly since it is not specified separately).

If I didn't explained something in some understandable way let me know and I will try with some example.




emre

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Re: How to setup business model like this
« Reply #12 on: December 13, 2012, 02:10:47 am »
OK. Let me investigate it further. I'll ask if more information needed. Thanks.

emre

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Re: How to setup business model like this
« Reply #13 on: December 15, 2012, 03:23:19 pm »
Hello talenat
I've implemented a solution for your issue. Please check https://github.com/emreeren/SambaPOS-3/blob/master/Samba.Domain.Tests/TaxTests.cs file to verify if these tests covers all cases we talked and if it works right. If you can provide more example calculations I can add more tests to check if it calculates correctly.

If you want to configure tax on SambaPOS you'll need to setup tax accounts. Unit Test setup section will give an idea about how to configure account types, accounts and account transaction types.

Thanks.