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(HELP) Incorrect VAT calculation

180412 Pastel II.pdf

 

Dear Sage Pastel

I have a problem and not able to get hold of Pastel by phone due to ‘high call volumes’. Found this forum and really hoping someone out there can help me.

It seems that Pastel is calculating VAT incorrectly. I am not referring to the 14% vs. 15% change, although my problem did start last month. Prior to last month all was well.

I have attached a scan of 2 invoices to help explain my problem.

In the attached you will note exactly the same set of items on two different invoices. On the one invoice we have grouped nine (9) similar items together i.e. item 323 x 9, while on the other invoice we have listed each of the nine (9) items separately. Pastel has calculated the Total Exclusive correctly in both cases. However, there is a difference in the calculated VAT amount and hence the sub total and total. It is small in this example (3 cents),  but hugely significant as our invoices list large numbers of items.

As stated above, this issue was first observed for transactions in March, not for the 2-3 years we have been using the cloud based system before.

Any help advice greatly appreciated

M

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Replies

  • Hi

    This is a "classical" rounding issue that will often crop up if you group or seperate items.

    So, in your example:

    1.  You have 9 x 382.02  =  3438.18   The VAT on the total is 481.345 = 481.35 (rounded)

    2.  If you take item by item, you get the VAT on 382.02  =  53.482 = 53.48 (rounded)

          You repeat the line items 9 times, so 53.48 x 9  =  481.32

    That explains the 3 cents difference.

    I am new to the cloud system, but maybe previously, they were always calculating on the invoice total, whereas now the system calculates item by item.

    Hope this helps.

    Alan

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