VAT calculation on sales invoices

[lubos]

All general-purpose double-entry accounting systems calculate tax amounts on line item level. You can’t make general-purpose double-entry accounting system which will not round tax amounts on line item level.

Why is it a problem? I don’t understand.

It looks like you care about this issue because you want your total to come to exactly to 1,575.00. In that case, you should be issuing invoices where amounts are already “tax inclusive”. Then Manager will calculate tax amounts backwards without affecting your desired total.

Create sales invoice with tax-inclusive amounts

If you charge tax, by default unit prices on sales invoices are treated as tax exclusive. You can make unit prices tax-inclusive when creating or editing invoices. [image] Tax exclusive means, when line items on the invoice are subject to tax, the tax will be added to the tax-exclusive total. For example, let’s say we charge a customer 1,000 with 10% tax. [image] Since the amount of 1,000 is tax exclusive, when you create the invoice, 10% tax will be added to the 1,000, increasing the total…