In some limited circumstances when working with invoices, you may experience a rounding error where the invoice total is incorrect by 1¢. In other cases, you may have a fixed fee that's inclusive of GST and you are unable to get to an exact figure.(for example, you are unable to produce a fixed fee invoice inclusive of GST for $500).
This is due to background mathematics when calculating GST.
The following instructions provide a workaround for solving this issue. Specifically, you will create a 1¢ disbursement (with no sales tax) on the invoice.
To do this:
- In Actionstep, click the global Create button and choose Disbursement from the Timesheet section. You may have to click Show all to view all of the available options.) The New Disbursement window appears.
- Click the Template drop-down list and choose Create New. The Create Disbursement Template window appears.
- Enter the following information:
- Description: Enter a description that will help you recognize this as a disbursement template.
- Unit of measure: Select Each from the drop-down list of options.
- Pricing: Enter 0.01 in this field.
- Is this amount inclusive of [tax type]: Make sure this checkbox is selected.
- Default Quantity: Enter 1 in this field.
- Account Code: Choose 6-9999 Sales and Purchase Rounding Errors from the drop-down list of options. (You may need to add this code to your general ledger if it's not there already.)
- [Tax type] Code: Choose N-T- No Tax (0.00%) from the drop-down list.
- Click Save to save your changes.
Once saved and applied to a disbursement, this workaround will add a -$0.01 disbursement to your client's invoice. You can remove this line manually; however, please note that the total of all the line items in the invoice will then not be totaled correctly.
FAQs
Q. I have created a draft sales invoice and need to apply a discount to bring the invoice total down to match the funds held in trust. Unfortunately, the fixed fee option when applying the discount only allows two decimal points. When I enter $431.45 as the fixed fee discount, the total of the invoice is 1¢ over what I need it to be. When I enter $431.46 as the fixed fee discount, the total of the invoice is 1¢ less than what i need it to be. Do you have a solution so I can match the figure?
A. Create the invoice as 1 cent more than what you need it to be, apply the trust funds to the invoice so that you have 0.01 amount remaining. You can then write off the 1¢. If you are using a Xero/QB integration you will need to create a credit note for 0.01 and apply the credit note.
Q. I am experiencing a tax rounding error issue when creating a credit note for $144.37 where the non-taxable item of -$0.01 is being added. However, the credit note cannot be created in Xero and I receive this error message "XERO API Exception Detected: #1: The document total does not equal the sum of the lines". Is there a known way to get around this problem without causing any reporting errors?
A. In this scenario, you want the total outstanding in Actionstep to be the same as Xero (in other words, all records should match). You will most likely want to credit this amount as you would not be using write-offs if you have a Xero/QB integration. Be careful that no one else is approving invoices or completing transactions that rely on the integration.
To do this:
- In Actionstep, go to Admin > Integrations and click Manage in the Xero section.
- Under Xero Mapping toggle Sales invoices to off (if you are having problems with credit notes/sales invoices).NOTE: When you toggle this option to off, if you approve invoices, they will not flow through to Xero/QB so be sure no one is entering anything when you do this.
- Find the invoice that you would like to credit.
- Create the credit and note and apply it to the invoice. You will not get the warning message as you are no longer integrated with Xero.
- Turn the sales invoices back on, reversing the actions in Step 2 above.
- Go to Xero and create a credit note for the same invoice. This way, both should match.
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