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If you have both GST Inclusive and GST Exclusive Price codes, GST on Special Prices is determined by the Price code for each document (Invoice, Order or Job) in which Special Pricing is applied. If the Price code is GST Inclusive, Special Pricing will include GST. If the Price code is GST Exclusive, Special Pricing will exclude GST. This can have a significant effect on prices and margins, as shown in the example below, where the special price of an item is $300.00 and the Cost Price is $248.00.
|
Cost Price |
Special (net) |
GST |
Special (gross) |
Profit |
Margin |
Price List Inclusive |
$248.00 |
$260.87 |
$39.13 |
$300.00 |
$12.87 |
4.9% |
Price List Exclusive |
$248.00 |
$300.00 |
$45.00 |
$345.00 |
$52.00 |
17.3% |
Warning: to avoid altering the prices by a significant amount, consider the effect that a different GST basis can have on Special Pricing.
If you add a Special Pricing rule that does not require a Who dimension (for example, monthly Product specials), or the Price code is not explicit in the Who dimension, you can include Price Code as a Who dimension and create separate rules for GST inclusive and exclusive pricing. If you change the Price code on an Invoice, Order or Job; change the default Price code for a Customer; or change the GST basis for a Price code; adjust Special Pricing rules accordingly.