In LS Retail POS Discount is calculated on "Unit Price including VAT"

Business Central/NAV User Forum
1

In LS Retail POS, the Discount is calculated on “Unit Price including VAT”.

Instead discount should be calculated on “Unit Price” and then VAT should be calculate on “Discounted price”

Ex:

Quantity: 1

Unit Price: 80.00

Discount: 8%

VAT: 6%

Now:

Unit Price including VAT = “Unit Price” + (“Unit Price” * 0.06) i.e: 80 + 4.8 = 84.80

Discounted Amount = (Unit Price including VAT * 0.08) i.e: 84.80 * 0.08 = 6.784

Total Including VAT = Unit Price including VAT - Discounted Amount i.e: 84.80 - 6.784 = 78.016

Required:

Discounted Amount = “Unit Price” - (“Unit Price” * 0.08) i.e: 80 - 6.4 = 73.6

TAX Amount = Discounted Amount * 0.06 i.e: 73.6 * 0.06 = 4.416

Total Including VAT = Discounted Amount + TAX Amount i.e: 73.6 + 4.42 = 78.016

Both will give Total Including VAT as same. But logically VAT must be applied on Discounted Amount and it must be printed in the same format.

Any setting to be done, to have the VAT calculation done on Discounted Amount

2

I am not sure that this is a LS Retail issue, and cannot test is as I don’t have acces to LS Retail.

The VAT Calculation/Discount calculation rules are different in some countries - In Europe UK does specially.

You could go into General Ledger Setup, Expand the General fasttab at check the field

Set a checkmark in “Pmt. Disc. Excl. VAT” and restart the client and give it a go…

PalleA

3

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VAT1.JPGVAT2.JPG

I still have the same issue…Please find the screenshot…

Discount is applied on “Unit Price including VAT”…but i need to have discount applied on “Unit price Excl. VAT”…

Can any one please help…!!!

4

Hi David,
That is default behavior of NAV. So if it doesn’t work for you, then I’m sure it must be something in LS Retail, then I’m sure it must be LSR that is doing it. Could you eventually, just for testing, try to create a normal NAV invoice, and see how it calculates the discount here.

5

David are you in the middle east? If so there are a lot of issues with the new VAT rules introduced on Jan 1st. NAV and LS retail (at least the version we had last year) does not correctly work with the new VAT rules in Dubai, (where I am). And its not just the rate calculation that is wrong, it also has issues with the geographic locations.

I am not sure if LS Retail have addressed this yet. I have approached a number of NAV / LS customers, and most are simply waiting it out till the first round of VAT submissions happen in June. And hoping that the tax authority wont implement the fines. IN Dubai the mistake you describe above has about a $1,200 fine PER sales document printed.

6

By the way, I don’t know the exact laws in Saudi, Kuwait, Bahrain, Qatar or Oman, but I think they are similar to the UAE Rules.

I know a lot of customers are trusing that their partner has it all under control, but they are not the ones that will pay the fines. So be careful.

7

Yes…I am in middle east - Bahrain. And currently we are implementing VAT for Saudi based client. Even VAT Consultants are not clear with the rules proposed by Saudi government.

So we are trying to customize LS code for VAT calculation. [emoticon:f46987a61e1246c8aea1dabe4dc68d98]

8

Yes…VAT and Discount calculation is perfect in normal NAV invoice. Issue is only with LSR calculations.

9

Same here in Dubai. The Tax authority quite smartly have already extended filing dates by 2 months to give people time to try and figure it all out. The question is whether they will enforce fines and penalties, because I have already seen millions of dollars of potential fines due to VAT errors in retail here.

I think you need to go in and customize the code to follow the laws as I don’t thing it makes sense to wait for LS Retail to fix this.