Overriding Tax on an Invoice

Introduction

When calculating tax on sales and / or supplier invoices, different systems can calculate the amount of tax in different ways, either totaling all the net values and calculating tax once for the total amount, or individually calculate tax for each line on the invoice.

With rounding rules, these differences can accumulate to a few cents/pennies.

Sales and Suppliers Invoices can be configured to allow manual editing of the total tax amount.

Two role-based settings – one for Sales Invoices and one for Supplier invoices, control who can make changes to invoice tax totals:

The settings below can only be accessed by printIQ support 

When no roles are selected, the total tax amount cannot be changed from what printIQ has calculated. The amount of deviation from the original total can be set in the Tax Adjust Max Amount.

This value applies to both sales and supplier invoices:

When entering suppliers’ invoices against inventory or outsource purchase orders, the calculated tax on the suppliers’ invoice may not match the tax calculated by printIQ.

Workflow

Purchase order was raised for 2 items from a Supplier. Goods are received and IPO is awaiting invoice:

The line totals are $159.18 + $205.08 plus 20% tax.

When printIQ generates the suppliers’ invoice, it sums the lines up and then calculates the tax:

159.18 + 205.08 = 364.26

20% of the total = 72.852 which is then rounded to 72.85

However, the suppliers’ system calculates the tax on each line and sums it at the end.

Line 1 – 159.18 * 20% = 31.836 – rounded to 31.84

Line 2 – 205.08 * 20% = 41.016 – rounded to 41.02

Adding the two line tax amounts 31.84 + 41.02 = 72.86 -  resulting in a one cent difference.

Clicking on the tax field in the invoice totals allows it to be edited.

A hint will display the maximum amount the invoices can be changed by. If the original calculated tax amount has not been changed, the hint appears as:

Enter the tax amount as per the suppliers invoice:

If the tax amount has been edited, the hint will show the Original tax amount as well as the maximum adjustment allowed:

Finally, click Save Changes to commit the change to the supplier invoice.

The suppliers’ invoice can now be exported in the appropriate format for your accounting application.

• Related Articles

• Creating and Updating Customers and Suppliers via CSV

  The process for bulk uploading or updating Customers and Suppliers is the same. Where ‘Customers’ are referred to below, you can substitute ‘Suppliers’ or ‘Freight Company’ as required. They must be uploaded in separate CSV files with the correct ...

• Xero - Exporting Job and Order Invoice Quantity

  Introduction Job and sales item quantities can be exported to Xero. When invoice details are exported to Xero, it requires a quantity and a unit price. Xero then calculates the line value by multiplying them together. By default, we export the ...

• Tax System - Aggregator Options

  Overview Inter-state sales in North America are subject to a myriad of rules and conditions to determine the tax rate(s) to apply. Taxjar or Avalara offer the ability to calculate and return the rate to IQ to enable completing the invoicing process. ...

• Bulk Updating Customers or Suppliers

  How to Export Customer/Suppliers There is an explanation of the customer/supplier fields in the PDF attached to this document Managing bulk updates is in Admin > Customers > View Customers. Show filters on the top right hand side of the screen under ...

• Product Tax Override on Product Category

  In some jurisdictions, Tax regulations dictate various rates on different product types. For example, in the UK you need to consider the following when determining the taxability of a product. “The standard VAT rate is only paid on some printed ...