Credits, discounts and taxes

[Minervah]

I have just realized this change:

 

Changelog from Version 3.2.0: Modified Credit to be applied after tax.

 

This issue was discussed in this topic:

 

problem the way credit works

whmcs.com/forums/viewtopic.php?t=3711

 

How can we apply a discount now before the tax calculation? I think that it is useful in many situations: paying affiliates, a client that forgets to apply a discount coupon and he tells it to you exactly after requesting a product...

 

Matt, would it be very difficult to allow discounts (before taxes) besides credits (after taxes)?

[Matt]

Discounts are done before the invoice. Ie. you order an item with a 5% discount and it shows up on the invoice at the new price. Not seperate. So you'd need to take discounts off the actual price or put a minus item line entry.

 

Matt

[Minervah]

Thanks Matt. Let's see an example.

 

A client is paying 6$ monthly. He is an affiliated and it has reached 20$ and I want to apply him a discount 20$ in next invoices. Where do I put those 20$? I cannot put it as credit, it should be discounted before taxes.

 

I think that it is not possible with the current system, for that reason I asked to be able to apply discounts to clients from the Admin Area besides credits.

[Matt]

Discounts where you can enter an amount that gets discounted over multiple future invoices until it's all used up would be a new feature. On all but the final month it would be zero to pay so why can't you just increase the next due date by 3 months manually and set the recurring price to 2 for the next invoice?

 

Matt

[Minervah]

...why can't you just increase the next due date by 3 months manually and set the recurring price to 2 for the next invoice?

 

You are right, I can make it this way, but it would be better if WHMCS could make it automatically.

 

I don't think that it would be very difficult to add discounts, their functionality is very similar to the current credits. A new text field is only needed in the Admin Area and a new line in the invoices. You can consider it if there are more interested people. In fact, the credits worked this way before the version 3.2.0.

 

Thank you again for your time.

[othellotech]

A client is paying 6$ monthly. He is an affiliated and it has reached 20$ and I want to apply him a discount 20$ in next invoices. Where do I put those 20$? I cannot put it as credit, it should be discounted before taxes.

 

You want to check that with your accountant before the tax man comes knocking for all your unpaid debts

 

There is no "technical" difference between paying him the $20 and them then ordering goods from your for $17+tax=$20 and therefore paying the entire 20 back, or you creditting their account with the $20, which gets spent on something for $17+tax - i.e. the *in credit* amount/affiliate payout/whatever when spent on goods attracts tax in teh usual manner - and WHMCS works exactly right

[Minervah]

I am not paying them, it is a discount. When you apply a discount in an invoice it is applied before calculating taxes, that is legal.

 

According to your reasoning the discount coupons that can be configured in WHMCS are also illegal.

 

It is not the same a discount and a credit, this was already discussed in:

whmcs.com/forums/viewtopic.php?t=3711

 

You said in that topic:

...the current system works as *discount* (in the same way coupons do) which affects the nett price, rather than *credit* which affects the gross price - both are valid for different circumstances, just needs an option as to which the WHMCS admin wants to use.

 

Exactly what I am requesting now... :wink:

[othellotech]

I am not paying them, it is a discount. When you apply a discount in an invoice it is applied before calculating taxes, that is legal.

You're helping the client avoid tax - whether thats legal is between you and your accountant

 

You can do what you ask for now, by creating a one-time use coupon for the value.

[Minervah]

You're helping the client avoid tax - whether thats legal is between you and your accountant

 

You can be sure that it is completely legal. You can apply discounts for cash payment, for early payment, for big quantities, for many reasons. And the discounts should be applied before calculating taxes.

 

You can do what you ask for now, by creating a one-time use coupon for the value.

 

I can not, coupons are for new orders, we are talking about clients that already have their product created with recurrent payments.

[othellotech]

You're helping the client avoid tax - whether thats legal is between you and your accountant

 

You can be sure that it is completely legal. You can apply discounts for cash payment, for early payment, for big quantities, for many reasons. And the discounts should be applied before calculating taxes.

 

I agree, you can at your discretion apply a discount which should be taken before tax calculation.

 

However the exchange of commissions earnt for discounts rather than CREDITS is a well known VAT and Income tax *, which *WILL* get you time in jail if done inside the EU.

 

As I said, for your local rules, you'd need to talk to your accountant

 

You can do what you ask for now, by creating a one-time use coupon for the value.

 

I can not, coupons are for new orders, we are talking about clients that already have their product created with recurrent payments.

 

Then to accomplish it, after invoice generation you will need to go and adjust the amounts by adding a line for the discount, before the client is expected to pay.

 

If its a regular thing, I'd suggest talking to Matt about funding a feature request to be implemented.