VAT rounding annoyance

1

I’m creating an invoice then POSTing XML to /invoices/{:invoice_id}/
invoice_items …

<?xml version="1.0" encoding="UTF-8"?> 9 50 products Products 50.0 4.167

My product retails at £5 inc VAT so I’ve done the maths to use 5/6 of
it so when 20% is added back on it should be right, but 5/6 of 5.00 is
actually 4.1666666666… so when it gets rounded and then there are 50
of them my order line value is 208.5 and then VAT gets added on at 20%
to bring my £250 intent to £250.20

This must be a common problem. I’d expect the API to allow me to
specify the tax at the same time, so that I could ensure the end
result matches reality.

How can I generate an invoice showing the correct amount?

2

Hi Brian,

I’m afraid this is a known issue. The VAT rounding is the same in the app
as the API. FreeAgent rounds the net value to 4.17 and uses that for
subsequent calculations.

Kind regards,

GraemeOn 28 February 2012 12:07, Brian Lowe b.lowe@volcanic.co.uk wrote:

I’m creating an invoice then POSTing XML to /invoices/{:invoice_id}/
invoice_items …

<?xml version="1.0" encoding="UTF-8"?> 9 50 products Products 50.0 4.167

My product retails at £5 inc VAT so I’ve done the maths to use 5/6 of
it so when 20% is added back on it should be right, but 5/6 of 5.00 is
actually 4.1666666666… so when it gets rounded and then there are 50
of them my order line value is 208.5 and then VAT gets added on at 20%
to bring my £250 intent to £250.20

This must be a common problem. I’d expect the API to allow me to
specify the tax at the same time, so that I could ensure the end
result matches reality.

How can I generate an invoice showing the correct amount?

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Graeme Boyd
Senior Software Engineer
FreeAgent Central Ltd
40 Torphichen Street, Edinburgh EH3 8JB
Registered in Scotland SC316774