On-Core Software LLC

Time Master - Apple iOS => Time Master Invoice Module => Topic started by: Wildcat on February 07, 2012, 11:58:36 pm

Title: Invoice tax calculation problem
Post by: Wildcat on February 07, 2012, 11:58:36 pm

Hi Guys

Thank you for the last update, loving the way the invoicing system now displays the projects & tasks while still collapsing the amounts via projects!

I'm having a problem with the way the system calculates tax. We have a 10% which needs to be added to our services.

My problem is as follows:-

I have two items on my invoice which including tax are
$110 + $16 = $126.00 (tax inclusive)

To use the invoice module I enter the items without tax as follows:
$100 + $14.55 = $114.55 (without tax)

then tax is calculated by the invoicing module as $11.46

114.55 (total) + 11.46 (tax) = $126.01 ***Incorrect***

If I change the amount of the second item to $14.54 to correct the 1 cent discrepancy the invoicing module calculates as follows

100.00 + 14.54 = 114.54  (total)

the module then calculates tax as $11.45

114.54 (total) + 11.45 (tax) = $125.99 ****also incorrect***

I understand this is an issue with rounding but can you please advise as I need to invoice for the correct amount of $126.00 and I also need to show the correct tax amount on the invoice.

Hope you can help!

Many thanks
Cat

Title: Re: Invoice tax calculation problem
Post by: Adam on February 08, 2012, 01:05:35 am

Hi Cat,

The problem is the proper tax for those numbers is $126.01.  I see your tax percentage is 10% (yikes!).  When you multiply 14.55 * 0.10 your result is $1.455.  Since the 3rd digit 5 must be rounded (up in this case), your tax on that is $1.46.  Unfortunately due to rounding $126.00 is not the correct total.  I would think if the tax man knocked on your door, he/she would probably want that 1 cent that you were supposed to charge.  :P

The only thing you could possibly do is if the $14.55 is an Expense, you can use a 3rd digit.  For example change the total to 14.545 and that + $100.00 would round to $126.00 after taxes, which would probably be fine even if you were audited as it would show 14.54 in the main screen (the detail/Edit screen would still show 14.545) and they would think that you overcharged by 1 cent.

Title: Re: Invoice tax calculation problem
Post by: Wildcat on February 08, 2012, 07:05:13 am

Thank you so much!  I didn't realise I could use three decimal places for the amount, that works beautifully and my problem is solved!

Adam, you are the best!!!