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Thread: Capturing rounding on invoices

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    just me duncan drennan's Avatar
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    Capturing rounding on invoices

    What is the "correct" way to capture rounding on invoices received? I currently just capture the item at the invoiced rate and then put the rounding against cost of sales (as a negative value). Is that satisfactory?
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    Site Caretaker Dave A's Avatar
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    Duncan, is this in relation to VAT or a rounding on 'cost per item x quantity' calculations?
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    Platinum Member Marq's Avatar
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    I would just capture the net figure. It's not worth the effort of chasing cents and the receiver is not going to worry about them, knowing that the net effect is so small.
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    just me duncan drennan's Avatar
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    Quote Originally Posted by Dave A View Post
    Duncan, is this in relation to VAT or a rounding on 'cost per item x quantity' calculations?
    The case that I occasionally have is when I buy a tool (or something) from a hardware store and there is rounding on the invoice.

    So for example, tool = R43.00, VAT = R6.02, Total = R49.02, Paid = R49.00 (due to rounding). Is the R0.02 a negative cost of sales?

    Marq is probably right, as long as it does not cause a discrepancy in your bank reconciliation.
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    Site Caretaker Dave A's Avatar
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    OK. I follow now.
    Quote Originally Posted by duncan drennan View Post
    Marq is probably right, as long as it does not cause a discrepancy in your bank reconciliation.
    Amended resolution agreed.
    The trouble with opportunity is it normally comes dressed up as work.

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