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'Prices include tax' not working with discounts

edited Nov 26, 2019 8:41AM in Accounting / ERP 1 comment

I've been trying to update our records with the (long-overdue) 'Prices include tax' field.  We have three discounted price levels set up as well as the base price.  When I enter the base price this what I get:

Tax (VAT) set to: 17.5%
Prices include tax: checked

Base Price:         1.00
10% discount:  0.77
15% discount:  0.72
20% discount:  0.68

It took me a minute to figure out how the discounted prices had been calculated, but it seems to follow this formula:
(base price - tax)-(base price - tax)*discount

So the discount is worked out on the untaxed amount: why when I've ticked the 'Prices include tax' box - wouldn't it follow that discounts would too?

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