5.3 Settings


5.3.5 Link Settings  <<  5.3.6  >>  5.3.6.1 Money Settings 

5.3.6 Money Settings Guide

Terms

VAT state

Whether some money value includes VAT or not.

Effective price/value/cost

The money value with the VAT state which is used in calculations and in bookkeeping. The corresponding VAT amount and the value in the opposite VAT state is always calculated directly from the effective value, instead of doing the same calculation sequences from the original other values. Look for an explaining example later on this page.

Decimals

The number of decimals (typically after the decimal point) used for the accuracy of values. Decimals can be converted into resolution, but not always vice versa. (..., 2 => 0.01, 1 => 0.1, 0 => 1, -1 => 10, ...)

Resolution

The rounding step size used for values. Only certain resolutions can be converted to 'decimals' count (factors of ten: ..., 0.01 => 2, 0.1 => 1, 1 => 0, 10 => -1, ...).

Selling prices

The prices shown to the customer in the shop (instead of being in the management side or internal values). The prices shown in orders and product info cards, product groups etc. are all selling prices.

Unit price

The price of the smallest unit of a product that the customer can adjust in the shopping cart. There are several variants of this, depending on the stage of calculations:

'base price': the unit price in administration side product data.

'final unit price': the base price adjusted by pricing rules (product option, price group, contracts, quantity pricing).

'selling unit price': final unit price converted to selling price VAT state, the price shown to customers in the shop. Typically both management side and selling prices use equal VAT modes, so this selling unit price is also equal to the 'final unit price'.

'effective unit price': a unit price with the effective VAT state value.

Comparison unit price

The value shown for comparing prices of different products or packages, e.g. "5.45€/kg".

General information about calculations with money


  • Calculations are carried always with "effective" prices, from which the VAT amount and the non-effective price are calculated when needed.

  • "What you see is what you get" - Any price shown in the shop or in the management side that is also stored in the database and/or used as a parameter in further calculations is stored, used and shown with exactly the same value. That is, the shown value is not a rounded version of the "real" value. Note that the product base unit price seen in administration side is not necessarily exactly equal to what is seen in customer side because customer side shows the unit price with most applicable price rules applied to it.

  • Calculations are done with exact values ("infinite" accuracy or amount of decimals) as long as possible, with no roundings except when the processes actually need rounding (e.g. when the calculation results in a value that is shown to the customer). Another exception is when an operation would result in a value that would truly need an infinite amount of decimals, in which case the current amount of decimals in calculations is arbitrarily added about 30 more decimals compared to the "effective precision" (a precision which is roughly comparable to what would be needed in order to get original values if calculations were reversed). For example, several divisions can quickly result in more than 100 decimals in internal temporary values.

  • Product variant unit price (or final unit price, including various price affecting rules like quantity pricing, product option, theme, customer effects) and effective selling unit price (including VAT state change if necessary) are calculated without any roundings in between (using exact or very high precision calculations). Rounding to "selling price resolution" or "smart rounding" (to same resolution as the original unit price) only comes after all those calculations.

  • Note that VAT calculations are inherently problematic in certain cases, even if mathematics itself was perfectly implemented. For example, suppose a product should have exact price of 13.00€ with VAT 22%. What would the price without VAT be? 10.65€? But 10.65€ * 1.22 = 12.993€ = 12.99€. 10.66€? But 10.66€ * 1.22 = 13.0052€ = 13.01€. Anything that can be shown to the customer in practice does not match exactly to the wanted 13,00€. That is why in this setup (effective prices with VAT) the prices without VAT are for "viewing only" (they should not be used in further calculations). This problem does not exist when effective prices are without VAT, but in that case there are some prices with VAT for which it is impossible to define a suitable price without VAT (for example, that 13.00€ (22%).

Because of the last point, it is strongly recommended to only use equal settings for the VAT states of product prices in management pages and selling prices. Especially the combination of product prices with VAT and selling prices without VAT is even theoretically problematic.

"Effective" prices and their significance Here are examples of calculating a simple basket total in two different ways (and for both VAT modes). Compare the VAT amounts and the basket totals without VAT. The incorrect values are shown in italic and greyed out.

Effective prices
Picture 5.28 : Effective prices




5.3.6.1 Money Settings