Tax rounding issues in Zoho Books and Zoho Invoice
I work with both Zoho Books (for my own business) and Zoho Invoice (for a client), and the problem is consistent in both platforms.
In some cases, rounded prices are proposed inclusive of tax. This can cause problems when working back to an amount exclusive of tax.
E.g. I have a price of 55 EUR inclusive of tax (21%). No matter how many decimals I put in the price on line item level, I always end up with 1 cent too little or too much in the invoice total. I have a feeling that VAT is calculated on the rounded line total (instead of on the actual item price). Very frustrating.
There is a really simple solution to this, and one that is currently ALREADY implemented in a different section of Zoho Books, specifically in the Expenses section.
More particularly, when recording an expense, once you specify amount and tax rate, a radio button set lets you indicate whether the recorded amount is inclusive or exclusive of tax.
I'm sure it wouldn't be very difficult to implement this in every instance where tax is applicable (invoices/items, bills, ...), both in Zoho Invoice and in Zoho Books! And it would make a lot of (paying) customers very happy.
In some cases, rounded prices are proposed inclusive of tax. This can cause problems when working back to an amount exclusive of tax.
E.g. I have a price of 55 EUR inclusive of tax (21%). No matter how many decimals I put in the price on line item level, I always end up with 1 cent too little or too much in the invoice total. I have a feeling that VAT is calculated on the rounded line total (instead of on the actual item price). Very frustrating.
There is a really simple solution to this, and one that is currently ALREADY implemented in a different section of Zoho Books, specifically in the Expenses section.
More particularly, when recording an expense, once you specify amount and tax rate, a radio button set lets you indicate whether the recorded amount is inclusive or exclusive of tax.
I'm sure it wouldn't be very difficult to implement this in every instance where tax is applicable (invoices/items, bills, ...), both in Zoho Invoice and in Zoho Books! And it would make a lot of (paying) customers very happy.