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mcclkris21
July 6, 2022
Question

Sales Tax Rounding Errors on Invoices

  • July 6, 2022
  • 1 reply
  • 0 views

Hello,

 

I am having issues with an item and its sales tax rounding... We have a service that we charge $7.00 for. Sales tax for this is 7.0% This should make the customer's total $7.49 (no rounding necessary), but the invoice, sales receipts, etc. are rounding this up to $7.50 for some reason. When I add 2 quantities of this $7.00 item, with the same sales tax of 7.0%, the total is $14.98. Each quantity provides a different outcome for the total, and there's no rhyme or reason as to why it will randomly add a cent here or there. Any suggestions on how to fix this? This is a problem if someone is wanting to manually figure the total it would cost a customer.  

 

Any advice would be greatly appreciated!

1 reply

J
JamesM4
July 6, 2022

Hi there, 

 

Welcome to the Community. QuickBooks offers a powerful tax module that simplifies the way you manage your taxes. It's important you know how the calculations work in QuickBooks and I'll be glad to share more info.

 

The program does the rounding by two decimal places and I encourage you to check out this helpful article that explains more about how rounding works in QuickBooks: 

Tax Rounding off logic in QuickBooks Online API.

 

Let me know if this explanation helps bring things into perspective. You're more than welcome to reach back to me in the comments below if you have other questions. I've got your back. 

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