Re: Profit on Realisation
Not sure how VAT is handled legally in Ireland.
The Australian counterpart to your VAT is the GST.
Here the wholesaler advertises all prices excluding GST. The retailer who buys from the wholesaler initially pays 10% GST to the wholesaler on the wholesale value and claims the amount back from the tax office. The retailer then adds his/her margin and only then adds 10% GST which he/she collects from the consumer. The latter is then paid to the tax office by the retailer.
If your situation in Ireland is the same as in Australia you could write the formula based on GST (VAT) excluded eg (I am using the Australian rate of 10%)
x = RRP/11*10 where x is the retail price excluding GST
y = wholesale price
then you get
POR = (x-y)/x*100
and you would display on the page
Quote:
based on RRP of (echo RRP) your gross profit margin is (echo POR) %
Again, my example is based on the assumption that your situation is the same as in Aus.
Re: Profit on Realisation
Hi Frank thanks for taking the time to look at this and for getting back to me. The two systems seem similar alright. In our case for example if we as wholesalers buy supplies within Ireland, we pay the VAT (23%) on these supplies.
On our web, we display each product ex VAT but when the Retailer adds the products to cart, the VAT is added at the end i.e 23%. In turn the Retailer will sell usually at the RRP which already takes into account 23% VAT to the consumer, so there is a chain.
To work your equation: it would be like this:
Box of Chocolate x 6 = €29.50 (Bulk price ex VAT)
RRP per box (inc VAT) = €10.49
Retail price (before VAT) = €8.53 (10.49/1.23)
Wholesale Price (ex VAT) =€4.92 (29.50/6)
POR 42% (8.53-4.92/8.53*100)
So think we work on same here, except wholesale price needs to be divisable by the no. of units per qty.
Now I know I could just add a field add it manually with excel and then upload all products again with EP. But it would be better if the POR Field could be added an automatically work as the VAT field does. This is a website where this feature is working here.
I am just not sure how to go about implementing this, so really appreciate any guidance on this. Cheers.:smile:
Re: Profit on Realisation
Quote:
Originally Posted by
jagall
....
Now I know I could just add a field add it manually with excel and then upload all products again with EP. But it would be better if the POR Field could be added an automatically work as the VAT field does. ..... Cheers.:smile:
Bear in mind that the VAT value is static (until some bright button in government decides to increase the tax...:shocking:.....) BUT your POR percentage may be variable from product to product. Consequently you would need an extra field for RRP but not for POR.
Re: Profit on Realisation
Quote:
Originally Posted by
frank18
Bear in mind that the VAT value is static (until some bright button in government decides to increase the tax...:shocking:.....) BUT your POR percentage may be variable from product to product. Consequently you would need an extra field for RRP but not for POR.
Hi I actually do have an extra field added for RRP, but will need a calculated field for POR. I know this could be done manually in excel before importing but it would be nice if it worked from the admin area as a field that populated based on the values of the other fields i.e. price, count, RRP. Probably easier to do it manually?