CORE-11836 Problem VAT calculation on whmcs 7.4

[Esi]

Hi,

i have seen a problem with VAT calculation in whmcs 7.4.1 version. As reported in image below, VATon 22% for this invoice need to be 3.54€ and not 3.53€ as reported becasue 16.07 x 22% = 3,5354 so ~ 3.54€ is correct as previous whmcs version. This kind of problem wasn't with last whmcs version 7.2.x .

Is it a bug? How is possible to solve it?

Thank you.

Regards

 

Edited November 15, 2017 by Esi

[Esi]

There's other problem, now all clients paid regularly 19.61€ for their all old invoices, have 0.01€ in their balance!

I need to solve it.
Thank you.
Regards

[brian!]

2 hours ago, Esi said:

Is it a bug? How is possible to solve it?

report it as a bug to WHMCS.

I can reproduce it locally (the first issue)...

I suppose it's possible it's calculating the VAT on each individual item, rounding and then totalling those rounded figures.

6.11 x 22% = 1.3442 -> 1.34

9.96 x 22% = 2.1912 -> 2.19

2.19 + 1.34 = 3.53

but reporting it as a bug to WHMCS should tell you whether WHMCS consider it as an issue or not... if they do, they might release a hotfix for it, or add it to the next maintenance release.

[Esi]

Hi and thank you for your answer. Normaly these items are both of them with vat to 22%, i think problema is caused with the approximation way. 22% of 16.07 is 3.5354 so till versione 7.2.x whmcs approximate it to 3.54 but now with 7.4.1 it changes to 3.53 and for me it is the real problem.

[WHMCS John]

Hi,

In version 7.4 the tax calculation route was refined somewhat. Whereas previously the tax was calculated on the sub-total, it is now calculated individually for on each line item and then added together to give the tax amount.

In this particular situation it does seem to result in a different result from previously. We have opened case #CORE-11833 for the development team to investigate this further.

[Esi]

1 hour ago, WHMCS John said:

Hi,

In version 7.4 the tax calculation route was refined somewhat. Whereas previously the tax was calculated on the sub-total, it is now calculated individually for on each line item and then added together to give the tax amount.

In this particular situation it does seem to result in a different result from previously. We have opened case #CORE-11833 for the development team to investigate this further.

Hi,

i need to solve it immediately, can be modified only tax calculation route in my 7.4 whmcs version with older to solve it right now?

Thank you.

[brian!]

19 hours ago, WHMCS John said:

In version 7.4 the tax calculation route was refined somewhat. Whereas previously the tax was calculated on the sub-total, it is now calculated individually for on each line item and then added together to give the tax amount.

and you didn't think to mention that in the v7.4 changelog or release notes?? how are we supposed to test these features when we don't even know they've been changed?

17 hours ago, Esi said:

In this particular situation it does seem to result in a different result from previously.

err obviously it will - anyone vaguely familiar with maths will know it could introduce errors - i'm genuinely shocked this wasn't noticed during even the most rudimentary of development testing.

18 hours ago, Esi said:

i need to solve it immediately, can be modified only tax calculation route in my 7.4 whmcs version with older to solve it right now?

WHMCS rarely exists on the "immediate" timescale - if they've opened a case, then they're likely looking at it, but no-one can tell you if a fix would be hours/days, weeks or months away... you won't know a fix is coming until it's released!

if you kept a copy of your files and database before upgrading to v7.4, you could downgrade back to v7.2 - but you may lose any new orders or changes since that database was backed up.

i'm reluctant to advise you to get a developer in to write an action hook to check/fix these tax values - frankly, you shouldn't need to... but I guess that depends on how long WHMCS are going to take to fix this issue.

[Esi]

 

2 hours ago, brian! said:

and you didn't think to mention that in the v7.4 changelog or release notes?? how are we supposed to test these features when we don't even know they've been changed?

If i haven't notice that they have changed their system tax calculation and they don't report it in changelog i can't invent it by my own.
 

2 hours ago, brian! said:

i'm reluctant to advise you to get a developer in to write an action hook to check/fix these tax values - frankly, you shouldn't need to... but I guess that depends on how long WHMCS are going to take to fix this issue.

Sure, but i don't know how could solve it....moreover whmcs have written me that don't think to change actual and newest their tax system!! But how many clients will be in the same my condition?

[WHMCS John]

Hi,

This change was introduced in case CORE-11500, this was in the initial beta release and therefore available during the entire testing cycle.

Some background to that case; in the past WHMCS used slightly different methods for handling tax calculations for orders with multiple taxable items. For the first order invoice we added all the taxable line items and then computed a single tax for that subtotal. For the recurring amount we computed the taxed amount for each taxable line item and then added this all together. Depending on the exact tax rates and item prices in some situation this could lead to a .01 difference between the two methods.

We decided that the more accurate method was to calculate the tax per line item, especially because this was the amount that was more visible to your customers and what they agreed to. We made the calculation consistent with purchase and renewal / recurring amounts. Therefore where WHMCS previous did two slightly different tax calculations in different places, it now does the same tax calculation in both.

As a result you will find that the tax calculation is more consistent throughout the WHMCS software. This is not something we intend to change again, so you can be confident that the calculations as they stand in 7.4 will continue to do so.

The issue here is that - in this particular edge case - where previously paid invoices are now displaying a different tax amount to that which was charged. Invoices generated after upgrading to 7.4 are not affected by this. The reason for this is that the calculation is done on the page load and displayed, rather than using the value stored in the tblinvoices record.

Therefore the tax amount which was charged is stored in the database and will be used in the generation of reports, so tax filings will continue to be accurate. However we certainly appropriate that invoice history should be accurate too, particularly if a tax investigation necessitated an individual review of each invoice.

This concludes the investigation work from case CORE-11833, so that has now been closed.

It is this display issue in such edge cases we intend to address, and as such have opened case CORE-11836 to scope, prioritise and implement a change to the way the tax amount is displayed on invoices in future.

Please stay tuned for updates.

 

[Esi]

Hi John

On 17/11/2017 at 2:10 PM, WHMCS John said:

It is this display issue in such edge cases we intend to address, and as such have opened case CORE-11836 to scope, prioritise and implement a change to the way the tax amount is displayed on invoices in future.

 

do you have some news about it ? i can't see this case CORE-11836  in changelog.

 

thank you

[J-B]

Same here!

 

Please release a Hotfix! The tax office has already warned me that i write wrong invoices. It threatens a penalty if I continue.

[Plambee]

A Fix for the Case CORE-11836 more than urgent. For Bugs like "GetProducts API does not return product data" or "Resend SSL Configuration Email email link incorrect" WHMCS is able to release a hotfix, but for a bug which can bring WHMCS's paying customers tax and possibly legal issues, nothing happens? That can not be serious!

@WHMCS John Is there any chance to get an fix or at least a news on the case? Or will WHMCS take our punishments if the tax office gets worse?

[Esi]

Hi @bady i don't know if whmcs will fix this our problem. Really i don't know it. Can you give me link to see that Case CORE-11836 is till open ? I don't find it.

 

[Plambee]

33 minutes ago, Esi said:

Can you give me link to see that Case CORE-11836 is till open ? I don't find it.

Only WHMCS can say if the case is still open or if the closed it without fixing. But I hope that WHMCS will fix it, a billing software which can't calc taxes correctly........ will lose clients.

[andrew_ct]

This is a critical bug, if WHMCS can not handle financial elements correctly, its not very good as a billing platform!

 

I also have this problem, but mine shows that invoice amount and the confirmation email amounts are different...

 

[J-B]

@WHMCS Aaron @WHMCS Alex @WHMCS Andrew @WHMCS Arty @WHMCS Ben @WHMCS Brian @WHMCS Chance @WHMCS Jimmy @WHMCS John

 

I am still waiting for a fix!

[WHMCS John]

Hi,

This was an intentional change made in response to reports by users that the invoice amount was different to that displayed on the order form summary. That in itself posed legal implications, as regulations in EU countries require the invoiced amount to match exactly the amount displayed during the order process. As such we switched from using two different methods to a single method in both places.

Due to these factors we do not currently intend to reverse this change or add the ability to choose between the two methods. However we are always open to user feedback, and if there was a demonstrable demand for this, then it's certainly something we could consider. I appreciate you reaching out in this thread, and I have noted your feedback on this matter. The best channel for us to judge wider demand for a change in the software's design is via our dedicated feature request website at http://requests.whmcs.com
I encourage you to suggest this as a new idea for comment and voting upon by other WHMCS users. The more popular a vote becomes, the more likely it is to be considered by our development team for potential inclusion in a future release.

[Plambee]

@WHMCS John We do not want the calculation to be reversed. We want to correct the incorrect calculation. WHMCS is a billing software and it may NOT be that the tax calculation has a cent difference to the actual amount.
And that's not the case for a request, this is a bug that needs to be fixed.

You wrote that is a EU regulation that the invoiced amount has to match the displayed amount of the order process, thats right. But it is also mandatory that the tax amount matches the total price, and WHMCS don't do this in some cases. If there are already legal changes then these should be completely implemented and not only half thought through.

[J-B]

What please do you write there?

The tax calculation is wrong, that is fact and a urgent bug! You want to tell me the EU says to you that your customers should evade taxes?

[andrew_ct]

41 minutes ago, WHMCS John said:

Hi,

This was an intentional change made in response to reports by users that the invoice amount was different to that displayed on the order form summary. That in itself posed legal implications, as regulations in EU countries require the invoiced amount to match exactly the amount displayed during the order process. As such we switched from using two different methods to a single method in both places.

Due to these factors we do not currently intend to reverse this change or add the ability to choose between the two methods. However we are always open to user feedback, and if there was a demonstrable demand for this, then it's certainly something we could consider. I appreciate you reaching out in this thread, and I have noted your feedback on this matter. The best channel for us to judge wider demand for a change in the software's design is via our dedicated feature request website at http://requests.whmcs.com
I encourage you to suggest this as a new idea for comment and voting upon by other WHMCS users. The more popular a vote becomes, the more likely it is to be considered by our development team for potential inclusion in a future release.

John,

You say this change has been implemented?

Can you explain why I am still getting Invoices showing different amounts to the confirmation emails?

Would be useful to get explanation, so that I can screen shot and show the tax office if they then raise this issue with my company.

I'm updated with version 7.4.2

 

[brian!]

5 hours ago, bady said:

We do not want the calculation to be reversed. We want to correct the incorrect calculation. WHMCS is a billing software and it may NOT be that the tax calculation has a cent difference to the actual amount.
And that's not the case for a request, this is a bug that needs to be fixed.

I simply can't see how this can be a feature request - the calculation is wrong.

[J-B]

@WHMCS John

 

you see any different in the tax with the same price?

 

 

You see now the Bug? Same price 7.50 but different tax!

[Remitur]

In my experience: this bug involved two invoices during one month.

I lost half an hour to understand where those damn 2 cents were missing.

Then I lost another hour trying to understand why.

Then I discovered this thread.

Then I lost another half an hour explaing to my accountant the reason of the problem, and why it could not be fixed... 

[Remitur]

On 15/11/2017 at 8:04 PM, WHMCS John said:

Whereas previously the tax was calculated on the sub-total, it is now calculated individually for on each line item and then added together to give the tax amount.

 

Tax rules almost everywhere in the world specify different.

And it's easy to understand the reason.

Assume I'm selling nails, and the price is 0,01 each plus VAT (20%)

So, if I'm going to sell 100 nails to a customer:

• according to tax office, final price is 0,01 x 100 + VAT = 1,20
  (of these, 20 cents are taxes)
   
• according to you, final price is (0,01 + VAT) x 100 = 1,00
  (with zero taxes)
  Very happy the customer, very unhappy the tax office...

[J-B]

@WHMCS John

please tell me, if whmcs want to fix this Bug or not.

I only want a simply answer, Yes or No. Not more ...

So I know then if I wait for a fix, or I have to search for a new Hosting software that calculate the tax corretly. 

Edited February 8, 2018 by J-B