Results 1 to 5 of 5

Thread: Capturing rounding on invoices

  1. #1
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts

    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?
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Duncan, is this in relation to VAT or a rounding on 'cost per item x quantity' calculations?

  3. #3
    Platinum Member Marq's Avatar
    Join Date
    May 2006
    Posts
    1,297
    Thanks
    73
    Thanked 283 Times in 216 Posts
    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.
    The cost of living hasn't affected its popularity.
    Sponsored By: http://www.honeycombhouse.com

  4. Thanks given for this post:

    duncan drennan (29-Sep-09)

  5. #4
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    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.
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  6. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    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.

  7. Thanks given for this post:

    duncan drennan (29-Sep-09)

Similar Threads

  1. income tax, invoices and payments
    By duncan drennan in forum Tax Forum
    Replies: 3
    Last Post: 12-Oct-06, 09:48 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •