I have had a self-bill invoice sent to me where the total is £2,079.97. The client’s VAT calculation is showing as £415.99 so the total payable is £2.495,96
However when I input this in Quickfile, the VAT calculation is showing as £416.00. 20% of £2079.79 is exactly £415.994, which should have been rounded down by Quickfile not rounded up.
Is this a bug or a configurable option somewhere in Settings?
How do I account for the 1p difference - do I issue a ‘credit note’ on the client’s account?
I’m not too worried about paying 1p extra on my VAT return but the self-billed invoices won’t match up with what I’ve input into Quickfile.
360.00 x 5 = 1800 + vat = 2160
119.98 x 1 = 119.98 + vat = 143.98
159.99 x 1 = 159.99 + vat = 191.99
Total = 2495.97
VAT is calculated at the line level and then totaled, it is not applied to the SUM of the line NET totals. If you put everything on the one line you will get the results you referred to, you’re posting them all to the same nominal anyway so it won’t make any difference merging to one line.
Thanks - that works out OK now, have just merged the two expense lines and the rounding error has disappeared. Unfortunately my client totals all the lines together then calculates VAT on the whole amount. Hope it doesn’t happen again!
Some suppliers use slightly different rounding conventions for VAT. I don’t think it will be a common problem. If you’re struggling with a couple of pence difference you can always just stick on an extra line with a + or - amount to get the total matching the issue invoice.
