There is a bug on VAT calculation. In my case, our vat percentage is 5% and it should be $696. But the system seems calculate VAT item by item then summarize VAT [86705%+52505%=697]. Not calculate VAT amount by summarize items first [(8670+5250)*5%=696]. That would be rounding on VAT amount. Please support to correct this problem. Thanks.
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Thanks for your prompt reply. But for our case, both method 1 or 2 can’t work.
Description Quantity Unit price Vat rate Total without tax Exact tax amount Tax amount rounded Exact price Price inc tax rounded
1 Product alpha 10 867 5% 8670 433.5 434 9104 9104
2 Product beta 10 525 5% 5250 262.5 263 5513 5513
If we choose to round (on 0 decimals) amount after summing all lines, we get:
Total without tax: 8670(E1) + 5250(E2) = 13920 (same than in method 1)
Total tax 5%: (8670(E1) + 5250(E2)) * 5% = 696 (we sum amount without tax for each lines, calculate vat rate on this and after we round value on 0 decimals)
Total inc tax (we sum total without tax + total tax): 13920 + 696 = 14616
Double check VAT rate settings in ‘Setup -> Dictionary setup -> VAT Rates or Sales Tax Rates’
If this is not the culprit, pls. post the error here:
Best regards
PS: Just entered your products as NOT predefined products (after “relocating” my company to Taiwan :-))
NO problem at all.
Best regards
You must not calculated tha vat value on a value that is rounded. You must first take the 5% and then rounded.
So
433.5 rounded to 0 decimal = 434
232.5 rounded to 0 decimal = 233
434 + 233 = 667
Calculation is correct
