Wrong gross sales and discount figure when order has discount (+Xero inconsistencies)

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Shopify Partner
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I've been investigating how Sales Tax / VAT / GST is handled by Shopify and I found several pretty problems!

In tax settings I have set up "All taxes are included in my prices".

Then I create a manual order with 2 items.

Item 1:

Product: Some t shirt

Variant: M

Qty: 1

Price: $10

Discount: $2

 

Item 2:

Product: Some t shirt

Variant: S

Qty: 1

Price: $10

Discount: $0

 

Order level discount: $3

 

I have an Australian store, which uses the standard GST rate of 10%.

 

Shopify calculates the following figures:

Subtotal: $15.00

GST 10% (included): $1.36

Total: $15.00

 

 

 

So far so good!

 

But then I go in the sales report (Reports>Finance>Sales) to check the entries generated for this order.

 

Item 1:

Product: Some t shirt

Gross Sales: $9.12

Discounts: −$3.05

Refunds: $0.00

Net Sales: $6.07

Taxes: $0.60

Shipping: $0.00

Total Sales: $6.67

 

Item 2:

Product: Some t shirt

Gross Sales: $9.09

Discounts: −$1.52

Refunds: $0.00

Net Sales: $7.57

Taxes: $0.76

Shipping: $0.00

Total Sales: $8.33

 

Now this is weird!

Even though the 2 items have the same gross price of $10 (tax included), they show up in the report with 2 different gross sales!

I believe that the calculated discounts are wrong, and therefore the gross sales is wrong as well.

It is my understanding that any order-level discount is incorporated into the line items proportionally to their price. Right? The rounding algorithm used by Shopify must be messed up somewhere and cause this rounding issue.

Let's do the maths:

The tax excluded order level discount should be $3 / (1 + 10%) = $2.73

Amount assigned to item 1 should be (10 - 2) / (10 - 2 + 10 -0) * 2.73 = $1.21

Amount assigned to item 1 should be (10 - 0) / (10 - 2 + 10 -0) * 2.73 = $1.52

Total discount for item 1 should 1.21 + (2 / (1 + 10%)) = 3.03

Total discount for item 2 should 1.52

So it seems to me the total discount for item 1 is a bit off...

 

Xero integration: This gets even weirder!

In light of this issue, I was curious to see how the Xero integration app (the official Shopify one) handles this. The numbers are way out!

 

Item 1:

Product: Some t shirt - M

Unit price: $9.09 => Different from 9.12 in shopify report

Discounts: -$2.92 => Different from -$3.05 in shopify report

Net Sales: $6.17 = Different from $6.07 in shopify report

 

Item 2:

Product: Some t shirt - S

Gross Sales: $9.09 => Matches

Discounts: -$1.39 => Different from -$1.52 in shopify report

Net Sales: $7.70 => Different $7.57 in shopify report

 

Total tax: $1.36 => Matches with shopify

 

Because of those differences, a rounding adjustment line item of -0.23 is added to the invoice to correct for the difference.

Doesn't that feel wrong?!!!

 

To summarize:

-The shopify sales report is wrong

-The generated xero invoice is also wrong, but in a different way

-What is up with that? I think Shopify needs to correct the algorithm and make it consistent across both the reports and the Xero integration (I haven't tested with Quickbooks)....

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Shopify Partner
660 0 119

I attached some screenshots, although you may have to zoom in a bit too see the numbers...

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New Member
2 0 1

 How did you fix this?

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