The issue I have is that my supplier displays unit prices as tax exclusive and then adds GST to the subtotal. When I submit these as a purchase invoice , I can to do the following:
- Deselect “Amounts are Tax Inclusive”
- Add GST 10% to each line item
The issue I have after this is that now the GST ends up in tax payable but this is not a liability as the supplier is collecting and paying the GST. So I don’t think this is the correct approach.
I then found here LINK that I could simply add a discount of -10% on the invoice instead to have the amounts amended to tax inclusive without these becoming liabilities.
Now the problem I’m having with this solution is that for one or two items, the total is not coming to the correct amount. An example is where I have bought large volumes of low cost units. e.g. 112 units at $1.36 total price. Manager.io doesn’t allow me to enter the total price and so I have to backwards calculate the unit price and this becomes a very long decimal number. I think because of this, rounding is now the issue.
Please can you help me with this? The issue above affects nearly every invoice I receive from my supplier and now I’m stuck. I’ve read the guide on handling discrepancies and this doesn’t help with my situation.