Hello there,
It seems that my 10%GST calculation on Sales Invoice is being wrongly calculated, actually its more about the rounding I guess. Any solution to correct that?
I was expecting 579.40 or 579.39 not 579.41. I’ve copied the flowing from one of my invoices. I’ve had the same problem few times.
Sub-total $ 5,793.95
GST 10% $ 579.41
Total $ 6,373.36
The calculation is not wrong - it just a rounding differential
GST is calculated on each line item first and then added up.
GST is not calculated from the sub-total value.
Thank you Brucanna,
I thought that’s what was happening, but as you probably know, most companies in Australia use Xero or Quick Book, i have a customer having problem inputting my invoices in their system as when their software recalculate GST according to Sub-Total, it comes out to a different value. Is there any way i can change that?
No, as your calculations are correct. They have the problem.
If your customer had purchased the items individually then they would have paid the same GST amount.
So why should they pay a different amount of GST because they brought them as a group.