Forum Discussion
Automatic Selling price calculator
nic140274 Not sure I follow. If you refer to the 25% in cell K4, that is not a revenue. I just entered the tax% there that you charge to the customer. PErhaps I should have removed your column header. Then I don't have to type "25%" in every formula where it is used. Just a habit.
The tax that you pay on you purchases are not costs and the tax that you charge to your customers is not revenue. I doubt that the 1 euro and the 15% are inclusive of taxes, but if you are certain that this is really the case, enter:
=1/1.21in C4, and
=15%/1.21in D5.
Have attached the schedule with these formulae.
Hi, looks like it works, I am going to play with it today and do a few more tests, but thank you so much.
When I was trying my way I kept getting some type of loop error.
What is the info I see further down the file?
| 0.841S = PPx(1+pm) |
| S = ((PP+1)x(1+pm))/0.841 |
nic140274 Ooops! You may disregard the bits at the bottom. That was me trying to figure out the math needed to write the formula in I4. Forgot to delete it before uploading.
I think that I may or may not made a mistake. When I provided the info I provided everything without tax, but when I tried to apply this formula to my real world I realized that the selling platform applies the 15% to the selling price inclusive of TAX.
When I buy my products I buy them with 21% tax, which I then get back fully every 3 months when I submit my taxes. When I sell a product the price has to be indicated including taxes, and that is where the 15% is applied. Out of the 15% + the fixed 1 Euro I can claim back 21%
So now if I get the selling price in the file you shared, I cannot just add 21% taxes because then the 15% fee should also increase which changes again the selling price and I find myself in the loop again.
How can I get the same logic you made but including buying taxes and selling taxes plus the 21% taxes I get back from the 2 fees?
I am not sure I have been really clear, I have been at this for weeks now 😞
nic140274 Clear! The tax you pay upon purchasing is irrelevant. It's not a cost (you pay and you get it back later). Tax charged to your customers is irrelevant also. You probably pay it at the end of the month and hopefully collect it from your customers later. So, these taxes only affect your cash-flow, not profits. The only impact the sales tax has it that the 15% platform fee (which is a real cost) gets higher. Have now worked this into the formula in J4. In cell B4, you enter the purchase price excluding tax. Cell K4 now has the selling price including tax. Profit = Selling price (excl. tax) minus total cost. Profit % = profit / total cost.
Hello Sir,
Can you please help me with the below detailed issue; Can we have a formula for this.
Distributor Product Price is normally printed on the boxes and the MRP is inclusive of taxes. The distributor sells it to the re-seller at Dealers Price and not at MRP and the re-seller further sells it to his customer at MRP rate. Finally, the tax paid to the Government by the agent/re-seller is after claiming input credit, that is, the tax paid to the distributor by the agent /re-seller will be deducted from the tax received from customer and the balance will be remitted to the Government by the agent /re-seller.
Example:
MRP on the box is – Rs. 1000
Dealer Price Rs. 800
Re-seller sold at: Rs. 900 after giving discount of Rs. 100 on MRP
The unseen breakup: product cost Rs. 847.457 + Tax @ 18% Rs = 152.542 (Roundup Rs. 1000)
Dealer Price Rs. 677.966 + Tax @18% Rs = 122.033 (Roundup Rs. 800)
Selling price Rs. Rs. 762.711 + Tax @ 185 = 137.288 ( (roundup Rs. 900)
Tax Payable to Government by re-seller:
Tax Charged to customer by re seller Rs. 137.288
Tax already paid through the distributor Rs. 122.033
Tax Due to pay 137-122= Rs. 15
How we arrive at profit :
Collected from resale = Rs. 900
Paid to Distributor = Rs. 800
Balance Tax Due to Government Rs. 15
Profit in the above sell is : Rs.85 (Rs.900-Rs. 800-Rs.15=Rs 85)
Sir, how can we have a formula for the above, So that we can decide on what percentage we can offer to customers and then how much profit will remain.
