When applying a discount to an item on an invoice, you can choose between 3 different methods:
A discount code eg TENPC
A number eg £10
A percentage eg 10%
You can also manage how the discount is applied if you charge tax/VAT on the services you provide. You can choose to have a discount applied either:
Before tax/VAT is applied
After tax/VAT is applied
Historically, discounts in WriteUpp have been applied to the price of the appointment as defined in Settings -> Scheduling -> Appointment Types BEFORE VAT/tax is added. From 06/08/20 you will be able to choose how this is managed, and elect to have discounts applied to the tax inclusive cost of an appointment if you prefer.
If you don't charge VAT/tax, you don't have to make any considerations to the way you apply discounts. The calculations will only differ if you do have a tax/VAT rate set
In addition, the final cost due (taking into account price, discounts and tax/VAT) will only differ if you apply a discount as a value, e.g £10. If you apply a percentage discount, the costs will be exactly the same whether the 10% is applied before or after the tax/VAT is.
An example of the figures you can expect to see if you apply a numeric discount, and the difference between the two calculations is noted below.
In both of these examples:
Appointment price as defined in Settings -> Scheduling -> Appointment Types = £50
VAT rate applied = 20%
£10 discount applied
Applying a discount before tax is applied to the appointment price
The £10 discount is applied to the price of the appointment, then tax is calculated on the discounted price.
Applying a discount after tax is applied to the appointment price
Tax is applied to the price of the appointment, then the discount is applied to the tax inclusive price. The Ex. Tax and Tax amounts are then calculated in proportion to the tax rate applied.
XERO USERS: As Xero uses a before tax calculation when discounting an invoice, you SHOULD NOT use the After Tax calculation. As such, if you have Xero connected to your WriteUpp account, the After tax calculation will be disabled. You won’t be able to select it when applying a discount to a line item.
A discount code eg TENPC
A number eg £10
A percentage eg 10%
You can also manage how the discount is applied if you charge tax/VAT on the services you provide. You can choose to have a discount applied either:
Before tax/VAT is applied
After tax/VAT is applied
Historically, discounts in WriteUpp have been applied to the price of the appointment as defined in Settings -> Scheduling -> Appointment Types BEFORE VAT/tax is added. From 06/08/20 you will be able to choose how this is managed, and elect to have discounts applied to the tax inclusive cost of an appointment if you prefer.
If you don't charge VAT/tax, you don't have to make any considerations to the way you apply discounts. The calculations will only differ if you do have a tax/VAT rate set
In addition, the final cost due (taking into account price, discounts and tax/VAT) will only differ if you apply a discount as a value, e.g £10. If you apply a percentage discount, the costs will be exactly the same whether the 10% is applied before or after the tax/VAT is.
An example of the figures you can expect to see if you apply a numeric discount, and the difference between the two calculations is noted below.
In both of these examples:
Appointment price as defined in Settings -> Scheduling -> Appointment Types = £50
VAT rate applied = 20%
£10 discount applied
Applying a discount before tax is applied to the appointment price
The £10 discount is applied to the price of the appointment, then tax is calculated on the discounted price.
Applying a discount after tax is applied to the appointment price
Tax is applied to the price of the appointment, then the discount is applied to the tax inclusive price. The Ex. Tax and Tax amounts are then calculated in proportion to the tax rate applied.
XERO USERS: As Xero uses a before tax calculation when discounting an invoice, you SHOULD NOT use the After Tax calculation. As such, if you have Xero connected to your WriteUpp account, the After tax calculation will be disabled. You won’t be able to select it when applying a discount to a line item.
Published on: 25 / 11 / 2020