- Support forum for the Cost of Goods for WooCommerce.
- August 4, 2023 at 6:38 am #121343Manish ChaubeyParticipant
We have implemented GST (India) as a tax system for woocommerce. When we are purchasing an item, it includes tax.
So, Purchase Price = Actual Cost Price + GST
Profit Should be = Sale Price – Purchase Price
We have to show GST on invoices for customers but for profit calculation, it should not cover. Because In India GST System is like this
Actual Sales Tax = GST on Sales (Inclusive) – GST on Purchase
I am explaining with an example,
I have purchased an “ITEM A” for an actual price of INR100 and paid 12% tax, so the purchase price = INR 112
now, I made a sale of this unit, for INR 150 inclusive tax (GST 12%). So, the calculation is
Sale Price = INR 150 (Incl tax @12% which is INR 16.07); Purchase Price = INR 112 (Incl Tax)
Total profit = INR 150 – INR 112 – (INR 16.07 – INR 12) [Difference between Sales Tax and Purchase Tax]
So, Total profit = INR 33.93
Please help me to calculate my profit, as I am seeing the wrong data which is directly deducting Tax from the sales price and then subtracting the purchase price. I hope I have explained in detail.August 4, 2023 at 10:50 am #121352MoshtafizurModeratorPlugin Support
Thanks for explaining the issue in such detail.
In order to calculate profit with taxes, please go to the “Products” section and set the “Get price method” to “Get price including tax”. Then go to the “Orders” section, scroll down to the “Calculation” and set the “order total” to “Order total incl. tax”. After that please go to the “Tools & Reports” section and run the “Recalculate orders” tool.
Please give it a try. Let us know if you face any issues.
MoshtafizurAugust 4, 2023 at 12:33 pm #121366Manish ChaubeyParticipant
I have already followed exactly the same process. But, still, it is calculating profit excluding taxes.August 7, 2023 at 12:34 pm #121465MoshtafizurModeratorPlugin Support
Thanks for your reply.
I have escalated this with our development team. They will get back to you as soon as they can.
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