Hi all,
I’m trying to determine how the math is done on my sales tax and commission for what is sent over to Stripe connect. I have sales tax set for the user, and did an order with two items from two different vendors.
Item 1 from Vendor 1: 40.00 sale (free shipping) + 3.40 tax
Item 2 from Vendor 2: 5.00 sale + 1.00 shipping + .42 tax
Total for order: 49.82
Over on the Stripe Connect end:
49.82 received - 1.74 Stripe Fee = 48.08 net
Vendor 1 is transferred 34.83
Vendor 2 is transferred 5.23
This leaves us as the Marketplace with 8.02.
From that 8.02, we have to remit the 3.82 in sales tax, which leaves us with 4.20 in commission.
However, our commission is set for 9% of the sale price minus the tax, which should be 46.00 (cost of both items). My math shows that should be 4.14.
Can anyone assist with how the math is done on the CS cart end? I have follow up questions on the accounting and what it shows, but for now I just want to be able to say with certainty how CS-Cart calculates all this stuff. If necessary, I can add screenshots of my vendor plans or Stripe Connect addon settings?
EDIT: I also just realized that I had the box checked for “Include Taxes In Vendor Commissions,” which I found confusing, but based on other posts here, I have unchecked. The math still does not add up. I would greatly appreciate if someone could inform me how these calculations are done, and I feel like it would be good to have it in the documentation.
Thanks everyone!
Randy - Alley Cove
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Hello all, I think I may have resolution here.
First, after extensive poking around, I decided to uncheck the “3-D Secure” box in the payment method for Stripe connect. This caused our fee to be taken out as an “Application Fee,” which to my understanding it should have been already. But the documentation isn’t clear around this. It’s almost like having 3-D secure checked changes you to a form of transfer and not the Direct Charges, even though my Connect dashboard specifically said I was using Direct Charges.
Still doing some fact finding, but with the above changes and the same repeated order totaling 43.40 (40 dollar sale + 3.40 tax), I was given a fee of 7.00, which equaled the tax amount + my 9% commission. The strip fee was taken from the user on their end. It then showed up as “Application fee” on their dashboard, which matches what the stripe documentation said it would do.
Thank you,
Randy
Alley Cove
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I am having the same issues. Do your payments involve multiple parties (Ex: 2 vendors in one checkout so they each get a portion?) or just single party?
It seems when 3-D Secure is enabled it changes the way the stripe fees are assessed. My testing shows that the admin receives commission and the fees are split between vendor and admin (so admin pays a portion of fees corresponding to commission amount and vendor pays the remaining fees).
Hi! Hey did you do the transfers manually or did stripe automatically conduct the transfers for you? I tried this but I haven’t been able to get the transfers to happen automatically with 3d secure enabled.
I have 3D enabled and transfers happen automatically. I don’t add in a delay and they happen 2 to 3 days after payment. From memory I think your very first one takes a little longer.
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Thanks for confirming! I came to find out from support that I simply needed to resave my stripe connect payment method and that refreshed the web hooks that were needed to make the transfers work. I am unsure of what I might have done to get it out of sync in the first place.
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