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Difference in VAT calculation?



I’ve just started with QF and now I am putting in some old invoices. I have a purchase invoice from Amazon with Gross Total 59.68. When I entered the same values in Purchase Order, QF calculated Gross Total 59.67. I see the difference comes from the second line, but why is this difference and what should I do?


It appears to be due to a difference in the rounding methodology. On the Amazon invoice they’re going from gross to net and rounding down

18.09/1.2 = 15.075

You can correct your PO by just directly editing the VAT amount on your invoice line.

However perhaps this should be posted to a “Purchase Invoice” rather than a “Purchase Order”. The latter is for initiating an order request with a supplier, although it looks like you’ve already been invoiced. Either way same principle of directly editing the VAT applies.


Yes, you are right about the “Purchase Invoice”. But I think I can’t put quantity there, that is why I’ve tried to post “Purchase Order” firstly and then to convert it to an invoice.

Thank you for your help. I will do as you advise.


Two points:

First, you don’t necessarily need to replicate the full details of the supplier’s invoice in the QuickFile purchase record as long as the overall net and VAT totals are correct - in the event of a VAT inspection the inspector won’t care how you’ve represented it in QuickFile, they’ll want to see the original VAT invoice from the supplier and confirmation that you’ve put the right totals into your VAT return. I run a retail shop and often have invoices from my suppliers with 100+ individual lines, and in QuickFile I just record one line “Goods for sale” with the net and VAT totals.

Second - you almost certainly don’t want to use “Stock” as the purchase category, that code (along with “finished goods” and “work in progress”) is only really useful for end of year adjustment journals. If the items are ones you’ve bought to re-sell then use “General purchases”, if they’re tools you’ve bought for use within your business then either an asset code like “Office equipment” or an overhead code like “repairs and renewals” or “premises expenses” might be more appropriate. Your accountant can advise, but for low value items (say under £100) I’d tend to make them expenses, and keep the asset codes for higher value items that it’s worth depreciating over several years.


Thank you Ian! You’ve been very helpful, indeed.


The only time I ever do enter all the lines of a purchase in full is when it’s a zero rated EC acquisition and I need to set the right UK vat rate for each item (as I import a mixture of things that are zero and standard rated under UK vat rules).