Amending incorrect VAT on invoices

[scoobeski]

Have a really awkward supplier who have updated their website and invoicing. The VAT amounts on their invoice is not correct but they say that it is. I can only change the VAT amount slightly on QF so at a loss as to what to do.

The invoice totals are:
£800.10 + 160.26vat = 960.36

however the vat on £800.10 is 160.02 and i can’t change the vat amount to match this.

when i asked them about it i got a snotty reply saying that the vat is worked out item by item and that quickbooks says that this is the correct way to do it. Surely the item by item and grand total should match?

does anyone else get these issues? any advice would be much appreciated

[QFBeth]

Hi @scoobeski

You can only override the VAT amount by I believe 10p to avoid any huge errors.

What you can do is create a line for the net value and £0 vat and then create another line with just the VAT.

the invoice totals will then match the invoice totals on the one you’ve received.

Hope this helps

[scoobeski]

OK that seems to work. Just bothers me that the VAT amount is wrong and right, but at least my accounts balance now

Thanks for that!

[ian_roberts]

@scoobeski

Surely the item by item and grand total should match?

It depends how you round it. Your calculation of £160.02 VAT is correct for a single item priced ex VAT at £800.10, but suppose I’m a retailer displaying my catalogue prices inc VAT and I have an item priced at £32.01 of which you’re buying 30. Each item is £26.67 net plus £5.34 VAT, making a total of £800.10 net and £160.20 VAT.

The rules on exactly how you’re supposed to round things vary depending on the business - if you typically list prices ex VAT then you can calculate to more decimal places on each line and round to whole pence at the total, but if you’re a retailer where most of your customers aren’t themselves vat registered then you’re supposed to calculate the VAT on each item separately and not round down by default.

[scoobeski]

yeah that’s understandable, but for me if your invoice is based on the vat for each item rather than the subtotal, you’d think you make your grand total/vat match that

we have one supplier that invoices us on the grand total type vat and takes payment for the item by item vat. its bonkers!

[HeatherD]

Hi Scoobs,

I have exactly the same with a supplier, expect they’re not snotty about it I got the impression I was the first person who had ever queries it with them, which is worrying but not surprising. They went and queried it with their invoicing software company who came up with a convoluted explanation. Pain, isn’t it??