Tax Rounding in Specific Purchase Invoices

While making sale invoice, we do not round our tax values. The problem arises during Purchase Invoice entries where different suppliers manage their tax rounding individually. Some prefer to keep the tax amount rounded up, some round it down, and some leave it as it is in decimals (like we do).

Our ERPNext is setup where our CGST, SGST or IGST do not get rounded in Sale Invoices. How do we match specific Purchase Invoice entries with that of the supplier’s invoice in the following case:

  1. Supplier has rounded down the tax value.
  2. Supplier has rounded up the tax value.

We tried to change the entry Type to “Actual” instead of “On Net Total” before entering the actual tax amount but it returns a “Tax Row #2: Charge Type is set to Actual. However, this would not compute item taxes, and your further reporting will be affected.” error and doesn’t allow saving of the Purchase Invoice.

Still waiting for a solution on this if anyone can help. :slight_smile:

I understand your concern.

Usually supplier who don’t round tax values may issue a manal invoice and prefer to keep it with precision while filing the returns.

We are not allowing charge type as Actual for GST accounts to ensure that item tax is calculated correctly.

You can take a simpler approch here.

  • Keep taxes with precision in purchase invoice.
  • Do purchase reconciliation on a monthly basis.
  • Reverse or increase net inputs on a monthly basis using a Journal Entry. (currently manual entry)

We have plans in place, to have automatic journal entries where Action performed is Accept Supplier Values in purchase reconciliation tool.

Let us know your thoughts.