VAT rounding down causing invoice to be under by 0.01

1

Hi,

I am in the UK and am VAT registered (20%)

I sell a product for “£17 including VAT”. But when I enter the pre-VAT amount into ERPNext, which is £14.166666666666, it rounds down to 14.16, which makes the total on the invoice £16.99

This is important because people pay in advance, and when I send the paid invoice, it will reflect a different amount and customers want to see it say exactly the same amount (£17.00 grand total).

I cannot legally show 0% vat in UK

Please could someone help, as I am really in love with this invoicing app, but this is literally the last snag we have left.

2

Hello,

If the item’s amount has decimal value, then there could be some error due to rounding loss.

How about entering tax inclusive price in the item table, and have tax back-calculated?

3

Thanks for your suggestion. Ahh I see the problem… Inclusive tax is
supported in Sales Tax, but not Item Tax (which is what we use). The
Inclusive checkbox is missing from edit Item > Item Tax > Click the
dropdown arrow next to the only row.

Is Item Tax Inclusive on the official feature suggestion list? If not,
how/where do I add to it?

Many thanks!

4

No need of checking tac-inclusive in the Item table. If it is checked in the Sales Taxes and Charges master, and if you have updated Tax Inclusive price in the Item’s row, then you will get the desired output. I suggest you give it a try in one Sales Invoice.