Figures don't add up - they're a penny out.

Garage Assistant performs its calculations on an invoice line-item level and not on the overall invoice totals.

We chose this method as almost every accounting package on the market (at the time of writing), such as Sage Line of products, Quickbooks and others, do so too.  In addition, it allows Garage Assistant to cater for more than one tax rate on a per-line item basis, allowing it to be used for such instances where varied tax rates are used for individual line items.

The difference is noticeable if you are comparing the VAT calculation by performing the following calculation:  Net Subtotal  x 1.175 

This may not always add up to the VAT total shown in GA3 due to rounding. However, GA3 is correct.

An example of this would be:

Line 1 - qty 1 X 35.00 + vat
Line 2 - qty 1 X 45.00 + vat
Sub-Total = 80.00
VAT = 14.01
Total Due = 94.01

You would assume that 80.00 + vat gives a total of £94.00, as it does if you enter 80 * 1.175 on a calculator, but due to them being listed as separate items, the vat per item is calculated, rounded and then added together. This gives the same results as if you where to invoice each line as a single invoice.

The following will explain as simple as possible as to why this is the case...

Let's take a closer look...

Line 1 : 35.00 + vat
Vat : 6.125 (rounded = 6.13)
Total : 41.125 (rounded = 41.13)

Line 2 : 45.00 + vat
Vat : 7.875 (rounded = 7.88)
Total : 52.875 (rounded = 52.88)

Therefore, the totals are:

Sub Total : 35.00 + 45.00 = 80.00
Vat : 6.13 + 7.88 = 14.01
Total = 41.13 + 52.88 = 94.01

A comparison with Sage Instant Accounts V12

Below is a Screen shot taken from Sage Instant Accounts 12
As you can see, the total is also 94.01 and the VAT figure is 14.01, as it is within GA3

Hopefully, this will help you to understand how the calculations work in GA3 and how they are indeed accurate for the type of invoicing being performed.

TAGS: figures, penny, pennies, vat, incorrect, rounding, calculator