SETTING UP COMPANY ACCOUNTS: ROUNDING UP OR DOWN IN PASTEL - VAT ISSUES

[Nessa2907a]

Hi

I have an issue in only SOME (not all) instances in that on a supplier invoice I enter the NET amount and select the TAX CODE: 01 (16% VAT in Zambia) but the GROSS amount is 1 ngwee (cent) MORE than it should be. If I reduce the NET amount by 1 ngwee - I then end up with a gross amount 1 ngwee LESS than it should be.

eg:

Net:89.66
VAT: 14.35
Gross: 104.01

Net: 89.65
VAT:14.34
Gross:103.99

I want it to reflect as:

Net: 89.66
VAT:14.34
Gross: 104.00


Do I need to set up a rounding account? I see on >auto setup under >set up customer control account there is a "rounding" tab that allows you to choose
how to round,
rounding account and
to the nearest.

I know how to set up a rounding account in the GL - but is that the correct thing to do? Will it make my problem go away?

Alternatively it is to do with decimals? I know I can change it to 1 decimal point, 2 or 3 in the set up. I currently have it set at 2 - which is preferable. I don't really want to have just 1 decimal or 3.

Thanks
Nessa

[Neville Bailey]

Hi Nessa,

I would rather suggest, for those occasions that you have the rounding problem, that you tick the option "Inclusive" at the top left of the invoice screen (before you capture any line items) and then capture VAT inclusive amounts. You will probably find that the rounding issue will disappear.