Rounding Errors In Subtotal With Inclusive Taxes

[PhatPixel]

There appears to be rounding errors in the calculation of the total of v3.1.1.  I currently have tax set at 10% inclusive (Australian GST).

 

Example as appears on PDF:

Item 1: Quantity 0.25, Unit Cost 72.7273 = $20.00 (inc tax)

Item 2: Quantity 0.25, Unit Cost 72.7273 = $20.00 (inc tax)

Item 2: Quantity 0.25, Unit Cost 72.7273 = $20.00 (inc tax)

Item 2: Quantity 0.5, Unit Cost 72.7273 = $40.00 (inc tax)

Subtotal: $90.91

GST 10.0000%: $9.10

Total: $100.01

 

It seems the total may be calculated by adding the Subtotal with the Tax, when it should actually be the sum of each line item's calculation.

 

Actually, the invoice is quite confusing where inclusive tax is used.  The line item Cost includes tax, but the Unit Price does not.  Then you have a subtotal at the bottom of the Cost row that excludes tax.  Then we have a rounding error.

 

Suggested solution:

Where inclusive tax is used, show the Unit Price including tax, eliminate the Subtotal and the Tax row should be something like "GST 10.0000% (included in Total): $9.09"

 

 

 

 

[Max]

Actually, the invoice is quite confusing where inclusive tax is used.  The line item Cost includes tax, but the Unit Price does not.  Then you have a subtotal at the bottom of the Cost row that excludes tax.  Then we have a rounding error.

 

Suggested solution:

Where inclusive tax is used, show the Unit Price including tax, eliminate the Subtotal and the Tax row should be something like "GST 10.0000% (included in Total): $9.09"

 

That would cause problems for users in other countries.

In the 28 EU countries one does need to (also) list the unit price exclusive VAT on the invoice.

Even though the rounding of the total must be based on inclusive prices when selling B2C, as inclusive prices is what you must advertise to consumers on price lists and during the order process.

 

You do can have both a column with the unit price exclusive and one inclusive, to make the invoice and calculation easier to understand.

That is what webshop software like Prestashop, and some Magento plugins do.

 

 

 

 

 

[PhatPixel]

Agreed. If there is a layout that works for the EU and AU regions, then best to use that.  Unfortunately the current invoice layout is confusing and doesn't calculate inclusive tax properly -- which was one of the main reasons I upgraded from v2.5 to v3.1.1 (v2.5 had rounding errors two, but this was because of only 2-digit precision in the calculations). 

[PhatPixel]

As I had feared, the new invoice layout has confused several customers this month.  Feedback so far:

• The line totals don't make sense because Quantity x Unit Price does not equal Cost (because Unit Price excludes tax and Cost includes it, but this is not indicated)
• The Subtotal doesn't make sense because it is the sum of the tax-exclusive line totals and not the tax-inclusive line totals that sit above it 
• We then get asked if tax has been calculated twice because there is a Tax element shown below the Subtotal, which they think is the tax-inclusive subtotal because of the tax-inclusive line totals above it

Can you please look into revising the invoice layout for the next update so that it can cater more appropriately for tax-inclusive countries?  Thanks.

[Cody]

As I had feared, the new invoice layout has confused several customers this month.  Feedback so far:

• The line totals don't make sense because Quantity x Unit Price does not equal Cost (because Unit Price excludes tax and Cost includes it, but this is not indicated)
• The Subtotal doesn't make sense because it is the sum of the tax-exclusive line totals and not the tax-inclusive line totals that sit above it 
• We then get asked if tax has been calculated twice because there is a Tax element shown below the Subtotal, which they think is the tax-inclusive subtotal because of the tax-inclusive line totals above it

Can you please look into revising the invoice layout for the next update so that it can cater more appropriately for tax-inclusive countries?  Thanks.

 

I'd suggest making a feature request and include a sample invoice with detailed explanation of each section the way you and your customers would expect.

 

Regarding the rounding issue, is the total displayed as "$100.01" in the PDF only, or also within the interface?

[PhatPixel]

Thanks, I'll submit a feature request for the tax-inclusive invoice layout.

 

The rounding error appears both in the interface and on the PDF.  I have since switched to using tax-exclusive mode but this still produces rounding errors.  Please see another example attached.