AudienceView Connect
AudienceView Documentation

Charge Calculation

Charge Types

There are three different types of charges available for configuration:

  • Commission: Typically, commission-type charges are charges that are remitted to an organization. This is typically used in cases where a third party sells tickets for your organization. You are able to use this type of charge as an incentive to the third party.
  • Charge: Used most typically as traditional service charges that can be calculated against a fixed price or can be included as part of the price of an item.
  • Tax: Used to separate tax charges out for reporting purposes.

There are also two additional, user-definable charge types. They are disabled by default in the Service Charge Types list.

These charge types can be configured in any suitable for your system. They do not have to be taxes.

  • User Tax1: User definable charge type.  
  • User Tax2: User definable charge type.

All charges are able to be configured at a particular level. That is, charges are able to be configured such that a charge may or may not apply to another charge. This allows organizations to place a tax on service charges.

Charges on price charts can be configured so that they are calculated against an entire order, against the performance or against each admission in the order for the performance. For more information, refer to Managing Charges on a Price Chart.

Also available to all charges is the notion of a cap, placing a maximal value that can be charged by a particular role assessing the charge.

Charge Calculation Types

For the following definitions, assume the following:

  • net: The basic value of the item before any charges have been added to it
  • internal charge: The value of the charge applied to the net value to produce the amount of the item
  • amount: The pre-total value of the item taking the net value and adding all internal charges
  • external charge: The value of a charge calculated on the amount value
  • total: The sum of the amount value with all external charges

There are three different means used to calculate a configured charge:

  • Inside: An internal charge used when the amount of the item is fixed and a fixed dollar value or percentage of the amount is desired. The value of the charge is calculated against the amount of the item and then subtracted from the amount to get the net. This option is typically used for calculating and supporting commissions.
    net + amount x [inside charge] = amount
    OR
    amount - [amount x inside charge] = net
  • Included: An internal charge used when the amount of the item is fixed and the charge percentage is fixed, such that the amount of the charge is representative of the percentage of the net value, not the amount value. This is similar to an additional tax, except that the value of the charge is calculated by working backwards from the desired amount. This is used to facilitate inclusive sales taxes like VAT in the United Kingdom.
    amount = (charge +1) * net
    OR
    net = amount / (charge +1)
‚ÄčWhere the charge is the decimal value of the percentage.
  • Additional: An external charge used once the amount is calculated to produce the total. The value of the charge is calculated against the amount and added to the amount to produce the total. This is used to facilitate charges like the GST in Canada.
    amount + external charge = total

To calculate the value of the charges:

Charge Type Charge Value Calculation
Inside (internal) amount x (inside charge rate)
Included (internal) amount - (amount / [1 + included charge rate])
Additional (external) amount x (additional charge rate)


As an example, assume that the values used for the calculation of each of the Inside, Included and Additional charges are as follows:

Amount = $100.00

Inside Charge Rate = 5%

Included Charge Rate = 5%

Additional Charge Rate = 5%

  Net Value Internal Charge Amount External Charge Total
Inside Charge (Internal) 95.00 5.00 100.00 - 100.00
Included Charge (Internal) 95.24 4.76 100.00 - 100.00
Additional Charge (External) - - 100.00 5.00 105.00
Caution
There are two possible ways in which internal charges (i.e. Inside and Included) can be calculated, Included and Inside Together and Included and Inside Separated. For more information, refer to Inclusive Charge Calculation.

Charge Levels (Charges on Charges)

A charge can be placed onto another charge; however, only two levels of charges can be configured. That is, you are able to put a charge on a charge, but not able to put any further charges on that charge product.

For example, assume that the values used for the calculation of the levelled charges are as follows:

Amount = $100.00

Level 1 Additional Charge = $5.00

Level 2 Additional Charge = 7% (the equivalent to a government's sales tax)

The level 1 charge will be added to the amount, giving a total of $105.00. The level 2 charge is then applied to the new amount, giving a total of $112.35.

Inclusive Charge Calculation

There are two possible ways that inclusive charges can be calculated:

The default setting is Included and Inside Together. To change or verify your current setting, refer to Configuring the Inclusive Charge Calculation.

Included and Inside Together

By default, included and inside charges are calculated together. First, the fixed and inside charges are calculated and deducted from the amount, and then the included charges are applied against the remaining amount.

Assuming the following values have been configured:

  • Amount: $100.00
  • Included Tax: 10%
  • Included Charge: 5%
  • Inside Charge 1: $5.00
  • Inside Charge 2: 5%

The net value would be calculated using the following formula:

  • Amount - Inside Charge 1 - (Amount x Inside Charge 2) / [1+ (Included Charge + Included Tax)] = Net
    OR
  • $100.00 - $5.00 - ($100.00 x 5%) / [1 + (5% + 10%)] = $78.26

Each of the charges would amount to:

Charge Configured Value Calculated Amount
Included Tax 10% $7.82
Included Charge 5% $3.91
Inside Charge 1 $5.00 $5.00
Inside Charge 2 5% $5.00
  Total Charges $21.73

Included and Inside Separated

Included and inside charges are calculated independently of each other, so that they are applied against the same base value (when the charges are applied at the same level).

Assuming that the same values as in the example above have been configured, the net value would be calculated using the following formula.

  1. The net value of the included charges (Included Net) is calculated:
    • Amount / [1+ (Included Charge + Included Tax)] = Included Net
      OR
    • $100.00 / [1 + (5% + 10%)] = $86.95
  2. The net value of the inside chages (Inside Net) is calculated:
    • Amount - Inside Charge 1 - (Amount x Inside Charge 2) = Inside Net
      OR
    • $100.00 - $5.00 - ($100.00 x 5%) = $90.00
  3. The total net value (Net) is calculated:
    • Included Net - (Amount - Inside Net)
      OR
    • $86.95 - ($100.00 - $90.00) = $76.95

Each of the charges would amount to:

Charge Configured Value Calculated Amount
Included Tax 10% $8.70
Included Charge 5% $4.35
Inside Charge 1 $5.00 $5.00
Inside Charge 2 5% $5.00
  Total Charges $23.05

Per Admission Calculation

Following standard accounting practice, charges are calculated on each item in the order. The sum of these charges is displayed on the Customer Services application Order|Summary page. Occasionally rounding can lead to small discrepancies between the sum of the item-level charges and the amount which would result if the charge were calculated against the whole order.

For example, if ten admissions priced at $60 each with an included charge of 12% for sales tax are added to an order, AudienceView will calculate the sales tax on each admission for a total of $6.43 each. The order containing ten admissions would have a total of $64.30 in included charges; however, if the calculation was applied to the ten admissions instead individually the total tax value would be $64.29.