Skip to content

[FIX] Accounting: Typo in B2B doc #13956

New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Closed
wants to merge 1 commit into from
Closed

[FIX] Accounting: Typo in B2B doc #13956

Changes from all commits
Commits
Show all changes
1 commit
Select commit
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
161 changes: 69 additions & 92 deletions content/applications/finance/accounting/taxes/B2B_B2C.rst
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -2,96 +2,82 @@
B2B (tax excluded) and B2C (tax included) pricing
=================================================

When working with consumers, prices are usually expressed with taxes
included in the price (e.g., in most eCommerce). But, when you work in a
B2B environment, companies usually negotiate prices with taxes excluded.

Odoo manages both use cases easily, as long as you register your prices
on the product with taxes excluded or included, but not both together.
If you manage all your prices with tax included (or excluded) only, you
can still easily do sales order with a price having taxes excluded (or
included): that's easy.

This documentation is only for the specific use case where you need to
have two references for the price (tax included or excluded), for the
same product. The reason of the complexity is that there is not a
symmetrical relationship with prices included and prices excluded, as
shown in this use case, in belgium with a tax of 21%:
When working with consumers, prices are usually expressed with taxes included in the price (e.g., in
most eCommerce). But, when you work in a B2B environment, companies usually negotiate prices with
taxes excluded.

Odoo manages both use cases easily, as long as you register your prices on the product with taxes
excluded or included, but not both together. If you manage all your prices with tax included (or
excluded) only, you can still easily do sales order with a price having taxes excluded (or included)
: that's easy.

This documentation is only for the specific use case where you need to have two references for the
price (tax included or excluded), for the same product. The reason of the complexity is that there
is not a symmetrical relationship with prices included and prices excluded, as shown in this use
case, in Belgium with a tax of 21%:

- Your eCommerce has a product at **10€ (taxes included)**

- This would do **8.26€ (taxes excluded)** and a **tax of 1.74€**

But for the same use case, if you register the price without taxes on
the product form (8.26€), you get a price with tax included at 9.99€,
because:
But for the same use case, if you register the price without taxes on the product form (8.26€), you
get a price with tax included at 9.99€, because:

- **8.26€ \* 1.21 = 9.99€**

So, depending on how you register your prices on the product form, you
will have different results for the price including taxes and the price
excluding taxes:
So, depending on how you register your prices on the product form, you will have different results
for the price including taxes and the price excluding taxes:

- Taxes Excluded: **8.26€ & 10.00€**

- Taxes Included: **8.26€ & 9.99€**

.. note::
If you buy 100 pieces at 10€ taxes included, it gets even more
tricky. You will get: **1000€ (taxes included) = 826.45€ (price) +
173.55€ (taxes)** Which is very different from a price per piece at
8.26€ tax excluded.
If you buy 100 pieces at 10€ taxes included, it gets even more tricky. You will get: **1000€
(taxes included) = 826.45€ (price) + 173.55€ (taxes)** Which is very different from a price per
piece at 8.26€ tax excluded.

This documentation explains how to handle the very specific use case
where you need to handle the two prices (tax excluded and included) on
the product form within the same company.
This documentation explains how to handle the very specific use case where you need to handle the
two prices (tax excluded and included) on the product form within the same company.

.. note::
In terms of finance, you have no more revenues selling your
product at 10€ instead of 9.99€ (for a 21% tax), because your revenue
will be exactly the same at 9.99€, only the tax is 0.01€ higher. So, if
you run an eCommerce in Belgium, make your customer a favor and set your
price at 9.99€ instead of 10€. Please note that this does not apply to
20€ or 30€, or other tax rates, or a quantity >1. You will also make you
a favor since you can manage everything tax excluded, which is less
error prone and easier for your salespeople.
In terms of finance, you have no more revenues selling your product at 10€ instead of 9.99€ (for a
21% tax), because your revenue will be exactly the same at 9.99€, only the tax is 0.01€ higher.
So, if you run an eCommerce in Belgium, make your customer a favor and set your price at 9.99€
instead of 10€. Please note that this does not apply to 20€ or 30€, or other tax rates, or a
quantity >1. You will also make you a favor since you can manage everything tax excluded, which is
less error prone and easier for your salespeople.

Configuration
=============

Introduction
------------

The best way to avoid this complexity is to choose only one way of
managing your prices and stick to it: price without taxes or price with
taxes included. Define which one is the default stored on the product
form (on the default tax related to the product), and let Odoo compute
the other one automatically, based on the pricelist and fiscal position.
Negotiate your contracts with customers accordingly. This perfectly
works out-of-the-box and you have no specific configuration to do.
The best way to avoid this complexity is to choose only one way of managing your prices and stick to
it: price without taxes or price with taxes included. Define which one is the default stored on the
product form (on the default tax related to the product), and let Odoo compute the other one
automatically, based on the pricelist and fiscal position. Negotiate your contracts with customers
accordingly. This perfectly works out-of-the-box and you have no specific configuration to do.

If you can not do that and if you really negotiate some prices with tax
excluded and, for other customers, others prices with tax included, you
must:
If you can not do that and if you really negotiate some prices with tax excluded and, for other
customers, others prices with tax included, you must:

#. always store the default price **tax excluded** on the product form, and
apply a tax (price excluded on the product form)
#. always store the default price **tax excluded** on the product form, and apply a tax (price
excluded on the product form)

#. create a pricelist with prices in **tax included**, for specific
customers
#. create a pricelist with prices in **tax included**, for specific customers

#. create a fiscal position that switches the tax excluded to a tax
included
#. create a fiscal position that switches the tax excluded to a tax included

#. assign both the pricelist and the fiscal position to customers who
want to benefit to this pricelist and fiscal position
#. assign both the pricelist and the fiscal position to customers who want to benefit to this
pricelist and fiscal position

For the purpose of this documentation, we will use the above use case:

- your product default sale price is 8.26€ tax excluded

- but we want to sell it at 10€, tax included, in our shops or
eCommerce website
- but we want to sell it at 10€, tax included, in our shops or eCommerce website

.. _b2b_b2c/ecommerce:

Expand All @@ -112,56 +98,49 @@ If you have both B2B and B2C prices on a single website, please follow these ins
Setting your products
---------------------

Your company must be configured with tax excluded by default. This is
usually the default configuration, but you can check your **Default Sale
Tax** from the menu :menuselection:`Configuration --> Settings`
of the Accounting application.
Your company must be configured with tax excluded by default. This is usually the default
configuration, but you can check your **Default Sale Tax** from the menu
:menuselection:`Configuration --> Settings` of the Accounting application.

.. image:: B2B_B2C/price_B2C_B2B01.png
:align: center

Once done, you can create a **B2C** pricelist. You can activate the
pricelist feature per customer from the menu:
:menuselection:`Configuration --> Settings` of the Sale application.
Choose the option **different prices per customer segment**.
Once done, you can create a **B2C** pricelist. You can activate the pricelist feature per customer
from the menu: :menuselection:`Configuration --> Settings` of the Sale application. Choose the
option **different prices per customer segment**.

Once done, create a B2C pricelist from the menu
:menuselection:`Configuration --> Pricelists`.
It's also good to rename the default pricelist into B2B to avoid confusion.
Once done, create a B2C pricelist from the menu :menuselection:`Configuration --> Pricelists`. It's
also good to rename the default pricelist into B2B to avoid confusion.

Then, create a product at 8.26€, with a tax of 21% (defined as tax not
included in price) and set a price on this product for B2C customers at
10€, from the :menuselection:`Sales --> Products`
menu of the Sales application:
Then, create a product at 8.26€, with a tax of 21% (defined as tax not included in price) and set a
price on this product for B2C customers at 10€, from the :menuselection:`Sales --> Products` menu of
the Sales application:

.. image:: B2B_B2C/price_B2C_B2B02.png
:align: center

Setting the B2C fiscal position
-------------------------------

From the accounting application, create a B2C fiscal position from this
menu: :menuselection:`Configuration --> Fiscal Positions`.
This fiscal position should map the VAT 21% (tax excluded of price)
with a VAT 21% (tax included in price)
From the accounting application, create a B2C fiscal position from this menu:
:menuselection:`Configuration --> Fiscal Positions`. This fiscal position should map the VAT 21%
(tax excluded of price) with a VAT 21% (tax included in price)

.. image:: B2B_B2C/price_B2C_B2B03.png
:align: center

Test by creating a quotation
============================

Create a quotation from the Sale application, using the
:menuselection:`Sales --> Quotations` menu. You should have the
following result: 8.26€ + 1.73€ = 9.99€.
Create a quotation from the Sale application, using the :menuselection:`Sales --> Quotations` menu.
You should have the following result: 8.26€ + 1.73€ = 9.99€.

.. image:: B2B_B2C/price_B2C_B2B04.png
:align: center

Then, create a quotation but **change the pricelist to B2C and the
fiscal position to B2C** on the quotation, before adding your product.
You should have the expected result, which is a total price of 10€ for
the customer: 8.26€ + 1.74€ = 10.00€.
Then, create a quotation but **change the pricelist to B2C and the fiscal position to B2C** on the
quotation, before adding your product. You should have the expected result, which is a total price
of 10€ for the customer: 8.26€ + 1.74€ = 10.00€.

.. image:: B2B_B2C/price_B2C_B2B05.png
:align: center
Expand All @@ -171,15 +150,13 @@ This is the expected behavior for a customer of your shop.
Avoid changing every sale order
===============================

If you negotiate a contract with a customer, whether you negotiate tax
included or tax excluded, you can set the pricelist and the fiscal
position on the customer form so that it will be applied automatically
at every sale of this customer.
If you negotiate a contract with a customer, whether you negotiate tax included or tax excluded, you
can set the pricelist and the fiscal position on the customer form so that it will be applied
automatically at every sale of this customer.

The pricelist is in the **Sales & Purchases** tab of the customer form,
and the fiscal position is in the accounting tab.
The pricelist is in the **Sales & Purchases** tab of the customer form, and the fiscal position is
in the accounting tab.

Note that this is error prone: if you set a fiscal position with tax
included in prices but use a pricelist that is not included, you might
have wrong prices calculated for you. That's why we usually recommend
companies to only work with one price reference.
Note that this is error prone: if you set a fiscal position with tax included in prices but use a
pricelist that is not included, you might have wrong prices calculated for you. That's why we
usually recommend companies to only work with one price reference.