We struggle to make our Discount/Tax calculation working alright - we tried all possible settings and nothing seems to work as we need (and what we assume as usual need).
We need: Discount to be deducted from Incl. Tax prices, and tax calculation to happen after discount.
Product subtotal excl. Tax = 100.00
Product subtotal incl. Tax (VAT 20 %) = 120.00
Discount (Fixed amount discount for whole cart) = 70.00
Having following settings set in Tax > Calculation Settings:
- [Apply Customer Tax] - After Discount
- [Apply Discount On Prices] - Including Tax
- [Apply Tax On] - Custom Price if available
We would assume this calculation logic:
Total paid by the customer = 50.00 (120 - 70)
Tax (VAT 20 %) = 10.00 (50 * 0.2)
However, what we get is this:
Total paid by the customer = 30.00
Tax (VAT 20 %) = 6.00 (30 * 0.2)
What is happening is this: Discount gets deducted from Excl. Tax Price, instead of Incl. Tax Price (although it is the one which is set in Settings!).
Interestingly, if we change settings of [Apply Customer Tax] to "Before Discount", discounts (both fixed amounts or %) get deducted from Incl. Tax Price. Unfortunately we cannot use this option, as in this case tax get (obviously) calculated from before the discount price.
So the question is - what can we do to make the combination of
[Apply Customer Tax] - After Discount
[Apply Discount On Prices] - Including Tax
work as discount being deducted from Incl. Tax prices & tax being calculated from post-discount total? We assume it should work absolutely fine but it does not in our case and our IT agency cannot find a way to fix it.
If any of you have experience with this, we would be very grateful if you share your knowledge.
[Magento ver. 126.96.36.199]