The price mode on an order in Brightpearl dictates whether the order row prices displayed are inclusive or exclusive of tax. This then ensures that Brightpearl calculates the tax correctly - either adding it on top, or splitting it out.
Tip: The price mode on the order is for display purposes only - if you'd like to ensure your customers only receive invoices displaying the tax one way or another, you can do so by making sure the columns on your invoice template are set appropriately. Read more here.
Prices include tax
In 'Prices include tax' mode, the 'price' and 'total' will display including tax. The tax breakdown will only be displayed at the bottom of the page, in the totals section.
In this example, the price of £12.99 is including tax and therefore 20% tax is calculated as being part of £12.99.
Notice how the tax column is hidden, and the total represents the row total.
Prices exclude tax
In 'Prices exclude tax' mode, the 'price' and 'total' will display excluding tax. There is an additional column, labeled 'Tax', which lists the row tax.
In this example the list price/price of £12.99 is excluding tax and therefore 20% tax is added on top.
Notice how the tax column is displayed and the total does not represent the row total, but the total net.
How is the price mode set?
Manually created orders
The price mode on a manually entered order is dependent on the price list used.
If the 'Show prices as gross' option on a price list is set to 'Yes', an order created using that price list will automatically have a price mode of 'Prices include tax'. If it's set to 'No', any order created using that price list will have a price mode of 'Prices exclude tax'.
This setting can be changed under Products > Price lists, by clicking the pencil next to the relevant price list.
Orders being created via the API and integrated sales channels will always include the order row net and tax values; the API always requires these two values separately and will not take a gross value. This means that the price mode is purely about how you are viewing the price on the order in the UI.
Which price mode is used?
The price mode on the downloaded order will be set by the price list, unless otherwise specified on the Order POST.
Exceptions - price mode is inclusive of tax, but the tax value doesn't match what Brightpearl would have calculated
This is due to the way the Brightpearl UI works. In this case, the tax value is overwritten by the downloaded order data, however, the UI only shows the tax field when the order is set with a tax exclusive price mode. To show the order correctly in the UI, the price mode will be changed to tax exclusive to handle this override. You can see when this has happened because the tax field on the order row is yellow.
An order for a single item, for which the customer paid £4, including 20% tax. This will be sent via the API as:
£3.33 net + £0.67 tax
When the order is created in Brightpearl, the line item is added with a tax inclusive price of £4.00 and a tax code of T20 (20%). Brightpearl performs its own calculation for tax and agrees that tax would be £0.67. Therefore the price mode remains as “Prices include tax”.
An order for a single item, for which the customer paid £3.99, including 20% tax. This will be sent via the API as:
£3.33 net + £0.66 tax
When the order is created in Brightpearl, the line item is added with a tax inclusive price of £3.99 and a tax code of T20 (20%). Brightpearl performs its own calculation for tax and disagrees - it thinks it should be £0.67.
In this case, the calculated value received via the API is overridden and manual tax is added. However, in order to apply manual tax Brightpearl needs the tax column to be shown. The tax mode is therefore switched to “Prices exclude tax”.