The Groupon order is meant to be able to provide users with an invoice that has only taxes or is $0 (depending on if you charge taxes in your area). The customer will pay Groupon upfront for $100 in window cleaning, with 50% off of it (or some variation of this discount).
Groupon workflow overview:
1. The customer buys "$100 worth of window cleaning for $49" discount on Groupon.
2. The customer pays $49 to Groupon.
3. Your Company receives the orders and schedules it in.
4. Your Company must charge taxes (if taxes are applicable) on the $49 dollars the customer paid Groupon.
5. Your Company will receive a cheque from Groupon for X% of the purchase price.
In Better, the ability to handle the above workflow is created using a bundle of 3 products:
Product 1: The initial product that's $100: This represents the initial purchase of the pre-discounted item the customer buys. This product has taxes applied to it.
Product 2: The discount line item: A -$51 line item. This represents the deal the customer is receiving from Groupon. This is essentially the discount on the $100 line item. This product has taxes applied to it.
Product 3: The amount the customer paid to Groupon but captured as a negative amount: In this example, a -$49 line item. This represents what the customer paid Groupon. The customer has already spent this money when making the purchase on the Groupon site. This product is tax-exempt.
Optional Product 4: Adding a small fee associated with travel and fuel charges.
The products are organized in this way in order to calculate the correct amount of taxes that a customer may be required to pay. A customer does not pay taxes to Groupon, there must be a separate transaction from the business providing the service.
Once the Groupon products have been created, they will need to be organized into a bundle. Press here to learn more about creating a bundle using existing products.
Here's how the taxes are calculated for this example order using the steps above:
1. Product 1: The full value of the services being provided before a discount is applied. In this example, the full value of the services was $100.
• This item has applied taxes to it.
• This will calculate $100 worth of taxes on the order.
2. Product 2: The discount that is required to discount the value of the services to the amount the customer paid Groupon. In this example, a discount of $51 was applied to the Groupon order.
• This item has taxes applied to it.
• This will calculate -$51 worth of taxes on the order.
3. Product 3: A discount is used in the third product for the amount the customer paid directly to Groupon. This amount is tax-exempt because the correct tax value has been calculated using Products 1 and 2.
• This item is tax-exempt.
Conclusion: There is $100 of taxes and -$51 dollars of taxes, leaving a total of $49 worth of taxes. This is how the accurate tax amounts are calculated for the Groupon purchase.