Sales Tax calculated incorrectly
svdbdecodev
Member Posts: 1
I just realized my sales tax on purchases is not being calculated correctly. It is supposed to be 15% (I set it up that way) but I discovered the system calculates it as 13.04%. I'm worried about all the past purchases I've loaded and if they are also calculated incorrectly. Can someone please help correct this?
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Hey @svdbdecodev. Could you please give me an example of your Sales Tax not calculating correctly? I would have to see exactly what's happening here to understand (perhaps an example transaction with a screenshot would help). To confirm, you've also set the Sales Tax to 15%? Let me know when you get a chance.
I'm having the same issue. My sales tax is set up as 5.3% but the purchase below is calculating .02 over. The correct tax is $3.92 but the bill is calculating as $3.94
I'm a newbie to Wave, so I'm sure I've done something incorrectly.
Grateful for any advice!
Hey @CottageKeeper . The tax rounding that occurs in your invoices is done on a line-item basis. This means that we individually round each individual line to 2 decimal places and add them up together at the end of the invoice.
As there's no way around this at the moment, I typically give the workaround of adding/discounting a new invoice item for $0.02 to charge the right amount and then mark it as an adjustment entry.
Thanks for the suggestion, I honestly can't do this as I would not trust myself to remember to check this and would be fearful it would throw all my accounting off. Would love to use WAVE but will have to wait until this is fixed. On a side note, I've entered this into an excel spreadsheet and calculated by line item with 2 decimal places and it totals correctly. I admit I don't even begin to understand all the brilliance that has gone into designing this software. Really, really, really want to use it. Praying this will be resolved quickly.
@CottageKeeper,
It is inevitable to have some rounding. I think an easier way is to pay what was collected and any minor differences at the end of the year can be put to the income statement. The most important things with sales tax is to collect the correct tax (taxable item x rate) and remit what was collected.