Capturing rounding on invoices

[duncan drennan]

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?

[Dave A]

Duncan, is this in relation to VAT or a rounding on 'cost per item x quantity' calculations?

[Marq]

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.

[duncan drennan]

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.

[Dave A]

OK. I follow now.

Marq is probably right, as long as it does not cause a discrepancy in your bank reconciliation.

Amended resolution agreed.