CS-Cart Tax Calculation for US Customers incorrect - Need input from other users

CS-Cart has created store for us www.shopimation.com based on ver 2.0.3. There are several issues we are observing and would like to have input from other CS-Cart users.



In this post we would like to mention an improper method of Tax calculation done by cart for atleast from US customer base persepective. CS-Cart calculates tax by per line item rather than on the order total which is totally incorrect from US customer perspective.



We would appreciate if similar thoughts and concern can be shared to this post so that CS-Cart realize that how critical is this. As a corporate we cannot charge customers incorrect taxes and then file incorrectly to the governement. Within a month of launch our accounts department is already struggling to reconcile as taxes don’t match between CS-Cart and Oracle.



We have seen that similar discussions on this topic was done but surprising CS-Cart did not take an initiative to fix this?



[url]http://forum.cs-cart.com/showthread.php?t=9875[/url]

[url]http://forum.cs-cart.com/showthread.php?t=8375[/url]



We have been working very closely with CS-Cart development and am sure that if they get feedback through this topic then we would be able to get this addressed.



Example - Customer ordered 2 products


[quote]

Tax CALIFORNIA~PASADENA~LOS ANGELES~91104~.0975

i.e State Tax 9.75%



Imation CDR 52X 700MB - 50PK Clearance CODE: YP010100235

Price - $4.67 and customer ordered 4 of these.

$4.67 x 4 = $18.68

Tax 9.75% = $1.8213

so it should be $1.82 (as it is less than 1.825) and not $1.84



Imation DVD-RW 4X 4.7GB ECO-PACK - 6PK Clearance CODE: 66000075649

Price - $0.68 and customer ordered 14 of these.

$0.68 x 14 = $9.52

Tax 9.75% = $0.9282

so it should be $0.93 (as it is greater than $0.925) and not $0.98



Overall tax $1.82 + $0.93 = $2.75



which is what shows in Oracle.

[/quote]



and CS-Cart calculates


[quote]

Imation CDR 52X 700MB - 50PK Clearance CODE: YP010100235

$4.67 x 9.75% = $0.455325

Round (0.455325) = $0.46

$0.46 x 4 = $1.84

Tax 9.75% = $1.84



Imation DVD-RW 4X 4.7GB ECO-PACK - 6PK Clearance CODE: 66000075649

$0.68 x 9.75% = $0.0663

Round (0.0663) = $0.07

$0.07 x 14 = $0.98

Tax 9.75% = $0.98



Overall tax $1.84 + $0.98 = $2.82

[/quote]



This CS-cart tax calculation method is incorrect atleast in USA. All Tax calculations for the purchase in US is made on the order total and not on each individual item and then added.



Appreciate if we can input and feedback on this topic so that we can suggest CS-Cart to fix this on a priority.



shopimation

As you mention, this issue has been brought up over and over without a proper solution.



I think the proper solution is to specify how taxes are calculated for each tax: by line item, product subtotal, discounted product subtotal or order subtotal (which would include shipping charges). This would provide a way to use different tax base for differing taxes.



Bob

And, if you have a discount applied, the Tax I’snt calculated after discounts!

Please, review this thread:

[URL]http://forum.cs-cart.com/showthread.php?t=13585[/URL]

[quote name=‘shopimation’]CS-Cart has created store for us www.shopimation.com based on ver 2.0.3. There are several issues we are observing and would like to have input from other CS-Cart users.



In this post we would like to mention an improper method of Tax calculation done by cart for atleast from US customer base persepective. CS-Cart calculates tax by per line item rather than on the order total which is totally incorrect from US customer perspective.



We would appreciate if similar thoughts and concern can be shared to this post so that CS-Cart realize that how critical is this. As a corporate we cannot charge customers incorrect taxes and then file incorrectly to the governement. Within a month of launch our accounts department is already struggling to reconcile as taxes don’t match between CS-Cart and Oracle.



We have seen that similar discussions on this topic was done but surprising CS-Cart did not take an initiative to fix this?



[URL]http://forum.cs-cart.com/showthread.php?t=9875[/URL]

[URL]http://forum.cs-cart.com/showthread.php?t=8375[/URL]



We have been working very closely with CS-Cart development and am sure that if they get feedback through this topic then we would be able to get this addressed.



Example - Customer ordered 2 products







and CS-Cart calculates







This CS-cart tax calculation method is incorrect atleast in USA. All Tax calculations for the purchase in US is made on the order total and not on each individual item and then added.



Appreciate if we can input and feedback on this topic so that we can suggest CS-Cart to fix this on a priority.



shopimation[/quote]

Please see the fix for the round up in here

[url]CS-Cart Documentation — CS-Cart 4.15.x documentation

usa tax is soo messed up i cant even use it:



this should be a major issue for all people using the cart and should be top priority over just about anything else…

please apply your pressure as end users to fix this issue…





see my thread also here:

[url]http://forum.cs-cart.com/showthread.php?t=14518[/url]



and bug tracker here:

[url]http://forum.cs-cart.com/vbugs.php?do=view&vbug_id=1532[/url]







this is for usa, i assume the rule applies to most countries but im not sure, but i cant see how logic would be different…


  1. tax is and should only ever be applied to the cost of the item subtotal!

    if you go into a store and buy it, they tax the subtotal.



    this is standard operating procedure,

    if the tax class/method is written differently then the programmer has made a huge mistake!!!



    omg i am loosing faith verrry quickly now that i am actually using this for my own use and testing it and finding major bugs in its operation…

    ---------------

    tax is collection money, based on the total earned income the seller collects on a good

    (tax is not based on the msrp or any pre discounts amount)

    you only collect tax and owe the government a percent of the total sale collected (post discounts)



    example: if an item normally sell for $10.00 and the tax rate is 10% ( .1)



    if you bought the item the tax is applied as such

    $10.00(item) x .1(tax) = $1.00(subtotal)

    $10.00(subtotal) + 1(tax) = $11.00(grand total)



    if you have a coupon for $2.00 dollars off the item it looks like such:

    $10.00(item) - $2.00(coupon)= $8.00(subtotal)

    $8.00(subtotal) x .1(tax) = .80(tax)

    $8.00(subtotal) + .80(tax) = $8.80(grand total)



    once more…

    you buy 2 items at $10.00

    and you have a coupon for $2.00 dollars off the item it looks like such:

    $10.00(item) x 2(quantity)= $20.00(subtotal)

    $20.00(subtotal) - $2.00(coupon)= $18.00(subtotal)

    $18.00(subtotal) x .1(tax) = 1.80(tax)

    $18.00(subtotal) + 1.80(tax) = $19.80(grand total)





    whew ok…so it sounds like someone has some recoding of the class tax if you are telling me the tax is applied pre discounts





    2)i had a total of 3 active locations

    a)usa

    b)usa->state->alabama

    c)usa->state->alabama->zip(zip code list)



    i then applied a tax rate to:

    b)state at 4%

    c)city at 5%



    no matter what i did i was only applied the stat tax rate, and not state and city, even when in the correct zip regardless of the state selection, i tried setting up the location with and without the country and state for the zip code based location, no difference on applying 2 tax rates on same order…



    i am less concern on this second issue, as i could just make 1 tax rate to get me by, but it is illegal to collect the taxes as your cart is configured i would be over taxing the buyer as they as not spending the full amount i cannot charge taxes on the full amount!!

I made the changes noted in the KB article below but it doesn’t correct the display of amounts shown for an option on an item. The totals at the bottom of the View Cart screen are correct but the option amounts by item are not shown without the rounding feature. Can someone point me to the files that I should update to make the options amounts use the same rounding logic as the changes made in the KB article?


[quote name=‘grabbags’]Please see the fix for the round up in here

[url]CS-Cart Documentation — CS-Cart 4.15.x documentation



Thank you!

Regards,

Stephanie

CS-Cart 2.0.8 - In development

Can anyone help with my request? I really need to have the tax shown on the item option look the same as the tax shown with the subtotal. Thank you!

I have a situation where CS-Cart is being used for a ‘Services’ based company.



Besides the ‘State’ tax there is also a ‘Service Fee’ which is calculated on a percent basis. The only way I could figure out to handle this fee is to setup an additional tax called ‘Service Fee’.



The problem that I am having is that the total is taxed, the first tax is added, THEN the second tax is applied to that total - this is not correct.



Purchase = $110.00

Tax1 = 4.712%

Tax2 (Service Fee) = 18%

--------------------------------------

Total should = $134.3892 ($134.39)



However the total actually comes out to $135.2152 ($135.22)



Is there a way to either apply each tax seperately then added together for the total, OR a way to setup the 18% service fee in a differnet manner so that the total comes out correctly?

Make sure that both taxes have the same priority - I think this will do what you want.



Bob

OMG - That was so simple!!!



Obviously it worked, but I spent hours trying to figure that out. Oh well… Live and Learn.





Thank You!!!

[quote name=‘grabbags’]Please see the fix for the round up in here

[url]CS-Cart Documentation — CS-Cart 4.15.x documentation



I didn’t see a reply from shopimation, but the KB article mod corrects the problem he started this thread with. I duplicated his two scenarios and got the correct tax calculated with the modification in the KB article. I am going to leave the mod in for my tax calculations.



Chris