Can't make a £9.99 invoice!


#1

I have integrated FreeAgent with our app, and we’ve just changed our pricing to be £9.99 inc vat - except this is an IMPOSSIBLE amount to generate an invoice for

£8.32 + vat is being calculated as 9.98,
£8.33 is £10

Has it really never been a requirement to generate an invoice for £9.99? It feels like it shouldn’t be uncommon?


#2

Can you not set your own VAT using the sales_tax_value. Pretty sure VAT is rounded down, so your net value would be 8.33 and then instead of setting a rate you fix the sales tax value at the rounded down amount which brings the total to 9.99?


#3

Can sales_tax_value be set? It didn’t look like it could be in the API. It’s not possible to do so through the main invoice editing screen


#4

Hi Paul,

Ewa here from the Engineering Team at FreeAgent — thanks for your message on our forum.

I can see you’ve spoken to our Support Team regarding this question — I’m afraid in this instance, the API doesn’t offer any additional workarounds compared the the web app. The suggested solution to create an invoice with two line items (one with the unit price of £8.32 and then another line item for 1p), although I understand is not quite what you’re looking for, can also be implemented via the API by passing an array of line items when creating an invoice.

Alternatively, you can decide to generate your invoices outside FreeAgent but still account for them by explaining income to Sales.

As promised, my colleague from the Support Team you spoke to has recorded the ability to calculate VAT in reverse from gross totals as a feature request in our internal system, so it will certainly be reviewed by our Product Team.

Best wishes,

Ewa


#5

Has no one ever wanted to generate an invoice for £9.99 on FreeAgent before? Adding a 1p line isn’t a solution


#6

Hi Paul,

It is possible to have a £9.99 (incl. 20% VAT) invoice in FreeAgent with the right combination of multiple line items, but unfortunately matters gets tricky when dealing with a single line item - because FreeAgent calculates VAT on invoices based on the net price of line items, and because each line item’s value is recorded with precision to two decimal places (so you can’t have an item with base cost of £8.325, which would give you the desired gross total of £9.99). I can see that the ability to calculate VAT in reverse from gross totals has been raised with our Product Team in the past, so please rest assured it’s definitely on their radar. In the meantime, my second suggestion to generate your invoices outside FreeAgent but still account for them by explaining income to Sales (or send outside of FA and just mirror in FA using the 1p workaround) might be better suited to your circumstances for now.

Best wishes,

Ewa