documentation/accounting/others/taxes/B2B_B2C.rst

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How to manage prices for B2B (tax excluded) and B2C (tax included)?
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When working with consumers, prices are usually expressed with taxes
included in the price (e.g., in most eCommerce). But, when you work in a
B2B environment, companies usually negotiate prices with taxes excluded.

Odoo manages both use cases easily, as long as you register your prices
on the product with taxes excluded or included, but not both together.
If you manage all your prices with tax included (or excluded) only, you
can still easily do sales order with a price having taxes excluded (or
included): that's easy.

This documentation is only for the specific use case where you need to
have two references for the price (tax included or excluded), for the
same product. The reason of the complexity is that there is not a
symmetrical relationship with prices included and prices excluded, as
shown in this use case, in belgium with a tax of 21%:

-  Your eCommerce has a product at **10€ (taxes included)**

-  This would do **8.26€ (taxes excluded)** and a **tax of 1.74€**

But for the same use case, if you register the price without taxes on
the product form (8.26€), you get a price with tax included at 9.99€,
because:

-  **8.26€ \* 1.21 = 9.99€**

So, depending on how you register your prices on the product form, you
will have different results for the price including taxes and the price
excluding taxes:

-  Taxes Excluded: **8.26€ & 10.00€**

-  Taxes Included: **8.26€ & 9.99€**

.. note::
  If you buy 100 pieces at 10€ taxes included, it gets even more
  tricky. You will get: **1000€ (taxes included) = 826.45€ (price) +
  173.55€ (taxes)** Which is very different from a price per piece at
  8.26€ tax excluded.

This documentation explains how to handle the very specific use case
where you need to handle the two prices (tax excluded and included) on
the product form within the same company.

.. note::
  In terms of finance, you have no more revenues selling your
  product at 10€ instead of 9.99€ (for a 21% tax), because your revenue
  will be exactly the same at 9.99€, only the tax is 0.01€ higher. So, if
  you run an eCommerce in Belgium, make your customer a favor and set your
  price at 9.99€ instead of 10€. Please note that this does not apply to
  20€ or 30€, or other tax rates, or a quantity >1. You will also make you
  a favor since you can manage everything tax excluded, which is less
  error prone and easier for your salespeople.

Configuration
=============

Introduction
------------

The best way to avoid this complexity is to choose only one way of
managing your prices and stick to it: price without taxes or price with
taxes included. Define which one is the default stored on the product
form (on the default tax related to the product), and let Odoo compute
the other one automatically, based on the pricelist and fiscal position.
Negotiate your contracts with customers accordingly. This perfectly
works out-of-the-box and you have no specific configuration to do.

If you can not do that and if you really negotiate some prices with tax
excluded and, for other customers, others prices with tax included, you
must:

1.  always store the default price TAX EXCLUDED on the product form, and
    apply a tax (price included on the product form)

2.  create a pricelist with prices in TAX INCLUDED, for specific
    customers

3.  create a fiscal position that switches the tax excluded to a tax
    included

4.  assign both the pricelist and the fiscal position to customers who
    want to benefit to this pricelist and fiscal position

For the purpose of this documentation, we will use the above use case:

-   your product default sale price is 8.26€ tax excluded

-   but we want to sell it at 10€, tax included, in our shops or
    eCommerce website

Setting your products
---------------------

Your company must be configured with tax excluded by default. This is
usually the default configuration, but you can check your **Default Sale
Tax** from the menu :menuselection:`Configuration --> Settings` 
of the Accounting application.

.. image:: media/price_B2C_B2B01.png
  :align: center

Once done, you can create a **B2C** pricelist. You can activate the
pricelist feature per customer from the menu: 
:menuselection:`Configuration --> Settings` of the Sale application. 
Choose the option **different prices per customer segment**.

Once done, create a B2C pricelist from the menu 
:menuselection:`Configuration --> Pricelists`. 
It's also good to rename the default pricelist into B2B to avoid confusion.

Then, create a product at 8.26€, with a tax of 21% (defined as tax not
included in price) and set a price on this product for B2C customers at
10€, from the :menuselection:`Sales --> Products`
menu of the Sales application:

.. image:: media/price_B2C_B2B02.png
  :align: center

Setting the B2C fiscal position
-------------------------------

From the accounting application, create a B2C fiscal position from this
menu: :menuselection:`Configuration --> Fiscal Positions`. 
This fiscal position should map the VAT 21% (tax excluded of price) 
with a VAT 21% (tax included in price)

.. image:: media/price_B2C_B2B03.png
  :align: center

Test by creating a quotation
============================

Create a quotation from the Sale application, using the 
:menuselection:`Sales --> Quotations` menu. You should have the 
following result: 8.26€ + 1.73€ = 9.99€.

.. image:: media/price_B2C_B2B04.png
  :align: center

Then, create a quotation but **change the pricelist to B2C and the
fiscal position to B2C** on the quotation, before adding your product.
You should have the expected result, which is a total price of 10€ for
the customer: 8.26€ + 1.74€ = 10.00€.

.. image:: media/price_B2C_B2B05.png
  :align: center

This is the expected behavior for a customer of your shop.

Avoid changing every sale order
===============================

If you negotiate a contract with a customer, whether you negotiate tax
included or tax excluded, you can set the pricelist and the fiscal
position on the customer form so that it will be applied automatically
at every sale of this customer.

The pricelist is in the **Sales & Purchases** tab of the customer form,
and the fiscal position is in the accounting tab.

Note that this is error prone: if you set a fiscal position with tax
included in prices but use a pricelist that is not included, you might
have wrong prices calculated for you. That's why we usually recommend
companies to only work with one price reference.