Tax calculation is not entirely correct

Tax calculation is not entirely correct. It is only 1 or 2 cents see attachment. In my opinion, the 21% vat198.51 instead of instead of 198.52 and the 9% VAT 22.41 instead of 22.43.

As far as my calculations go, this is exactly correct
Remember, tax calculations are done line by line, not in total


Thanks, I didn’t know this went line by line. The purchase invoices in Manager differ from the invoices I receive from the supplier. But if line by line the VAT is calculated then the difference is explained.

There is a problem in vat calculation,

There is a difference of 0.001 to 0.003 in each transaction also if i select Vat Inclusive invoice it goes wrong

for example if it is

subtotal = 476
vat 5% should be 23.8
but it is showing 22.68
and if i am de-selecting vat inclusive then it is showing me 23.803

and that is wrong also

Please help

Manager calculates VAT per line item and rounds to nearest whole currency unit eg cent.
This meets most Jurisdictions requirements. You will need to check if it meets the legal requirements in your country

@Patch what do mean please explain in details what i need is only to correct the calculation of vat all other things are perfect


Please look into this matter please

the tax will be calculated for each line and rounded for each line to the decimal places as per your preferences. these individually rounded tax values are added to show the total tax.

for example, as per your screenshot 1.0625 will be rounded to 1.063 because your preference is three decimal places. if you round every line similarly, the total would match what Manager shows.

there are multiple amounts like this in this invoice

i think there are 4 amouns of 1.0625

so it is 4.250

please check my excel sheet work also with 4 decimal.

it is not in the invoice. it is only in your manually calculated spreadsheet where you have chose to use 4 decimal places instead of 3. if you set it to 3 decimal places it will be same as calculated by Manager.

yes you are right it is like that

thanks for this but here is some suggestion @lubos @Tut

please calculate all amount of vat for each line then make it round

That’s a very large program change.
The issue Is Manager works with line items. Individual line items can have different tax codes which in turn can allocate funds to different accounts. Manager needs to balance the totals in all sub accounts and totals. It does this by rounding the smallest unit (line item) to a valid tender. After which all additions and subtraction can be exact.

The alternative is to round to greater precision in line items then round to valid tender on the totals. The result of which is full payment of invoices would not balance with the sum of the line items / account totals (which is method specified by the Australian ATO see Rounding of GST Manager compliance relies on the precision of a software vendor not being defined when applying the “Taxable supply rule”).

You will need to check if it meets the legal requirements in your country

@Muhammad_Safdar, this has been explained and discussed many, many times before in the forum. Search the forum to find those topics. Many examples have been provided.

No it doesn’t, tax inclusive and tax exclusive equals different tax amounts.
Let say you sell an item for 100.00 and a tax rate of 10%
Tax included 100.00 price > 90.91 + 10% (9.09) = 100.00
Tax excluded 100.00 price > 100.00 + 10% (10.00) = 110.00

Here in bahrain it is implemented on Total amount of invoice

in the when it calculates line by line it differs