Settings

This is not a feature request, but this is a bug/technical problem that you guys have on the selling price calculator.

Below is my explanation to the support team:

This is due to the fact that the fees is incorrectly calculated at the wrong time.

Based on your formula, you are assuming the fee is counting towards the ‘selling price, and not the purchase price only.

Here are 2 examples:

Example 1 which is how auto ds is currently operating: if product costs 100, and tax fees is 10%, and I want an additional profit of $50, based on your calculation it will be (100+50)/(100%-10%) = $166.6

Example 2: (The correct way in my opinion.) , since tax fees is 10%, the 10% should be applied to the product cost ONLY, NOT the total of selling price + additional profit. Because when I buy from the supplier, I am paying tax on the product cost only, not on my additional profit, right? Instead, the calculation should be: (10%*100)+100+50 = $160

In summary, Autods assumes the fee is based on the total value, whereas my 2nd example the tax fee should be charged only on the product cost, not the combined profit+product cost.

This becomes a huge problem because if I have many fees, for example 10% in tax , and 13% in selling fees, it will give an incorrect selling price.

Then this is what happens to selling price:

Example 1: (100+50)/(100%-10%-13%) = $194.8
Example 2: (10%*100)+100 = $110, then it will be (110+50)*13% + 110 + 50 = $180.8. We should separate the fees, not combine them which is what happened previously.

The right way is example 2.

Hope that makes sense.

Please forward this to the management to fix this problem so we can have an accurate representation of selling price.