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Post Info TOPIC: My invoice VAT totals analysis always different to the actual invoice???
Shaun UK


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My invoice VAT totals analysis always different to the actual invoice???
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Hi all,

I'm analysing a fairly large quantity invoice into different expenses. After doing a few months worth from one supplier I'm noticing there's always a penny or two difference in the VAT amount. I've checked my workings and they're fine. What's the explanation for this that I'm missing?!

Thanks

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semsley


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It is probably to do with rounding. The total figure will take this in to account but splitting into individual items will result in some higher/lower figures (I hope this is clear as it's not easy to explain in writing). What you must ensure is that the the total VAT on the suppliers invoices is the amount that you post.

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BackOfficeGroup


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I agree, especially if you use seperate programs to produce the invoice and then enter into an accounts package!

P

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Shaun UK


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thanks semsley. im aware that the invoice figure is correct unless theres something wrong with the order. Yes even when I summed all vatable items together at 17.5% the calculator and their invoice was different.

Will this situation not affect the accuracy of double entry accounts though? The invoice I have doesn't show each item's gross. Each VAT code is totalled for all items applicable at the end. So when entering to the expense accounts, if there's a difference would you just add the penny to one of the ones posted to to ensure the overall totals match? Even though an analysis of the receipt might show different, the materiality is so low that it doesn't matter?

So basically if I went through each individual item (across all different expenses) and noted the VAT on each to each decimal place shown, then the end figure would match up? This rather than rounding each expense account myself then totalling.

I hope I make sense!



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semsley


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You could look at each individual item's VAT and round up as necessary but you still might not get the correct figure. Just add or subtract (whichever way it is) the odd pence from ones that are nearest .5. Whilst it won't be 100% accurate as you said the figures is so low as to make no difference.

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Shaun UK


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... or is it that each software package can have slightly different rounding procedures?

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