Customs duty tax basis is rounded up

Hi,

When I import products, the tax basis is rounded up to the next dollar by the customs agency. I tried https://www2.manager.io/guides/9499 but it doesn’t work very well when multiple items are involved. Example:

The actual cost for the first item is $10.18, so I changed it to $10.19 and applied a $7.4 discount. The MPF tax should be $43.77, but it is $43.78. I tried adding 1 cent to any of the 3 items then applying a discount, but none of them worked.

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If I just entered a single item of qty 1 and price $12636, then the MPF tax will show $43.77 correctly. So the issue seems to be the order of operation.

Is there a way to resolve this issue by either:

  1. Having an option to “Round tax basis to nearest dollar” OR
  2. Choose how the calculation is done

Thank you.

You are seeing the difference between Manager performing calculations line item by line item and the counter-party performing the equivalent calculation on the total. This is a common issue and is well known to tax authorities and auditors. It affects all accounting software structured around line items.

The reason this approach is necessary is so that individual line items can be subjected to credit or debit notes.

If you look up the issue on the forum, you will find many discussions and suggestions for alternative approaches. Search for “rounding.” The solution you choose is up to you.

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Thank you for the response. So I searched around and came up with using a Rounding Expense account:

to accounting for the $0.01 difference in taxes.