cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks calculates 14.34 in my invoice. All my invoices are off by a few cents - help?

The 15% GST/HST is coming from a tax code I created to mimic New Brunswick's sales tax.
Solved
Best answer 05-14-2019

Best Answers
QuickBooks Team

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

Hi kaneesha,

 

That sounds like a great website you have going and I love your interest in using QuickBooks Online to enhance what you can offer your customers. What you've suggested as a solution would certainly work and may be your best option. Based on what the article my colleague shared with you states, QuickBooks Online will always calculate line-by-line. I've just tried playing around in a test account myself, and even adding subtotals doesn't affect this line-by-line calculation. I invite you to do some other tests yourself to see if there's anything else that might work for you. Other users here in community may have ideas as well.

View solution in original post

7 Comments
QuickBooks Team

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

Hi Kaneesha, 

 

Glad to have you post in the Community. I'd be happy to share more info about this. 

 

The reason why this is happening is because the rounding precision for sales tax calculations is designed for 2 decimal place precision in QBO. It's important to take note of the extra decimal places when inputting numbers on your sales forms. I encourage you to learn more about this here

 

Feel free to ask questions. I'm here to help. 

Level 1

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

Thanks for the quick response! 

 

I'm using the API to input these amounts, where my prices are already rounded to 2 decimal places.  In one of my orders, I have 31 separate items with a unit price of exactly $1.59.  2 of these items have a quantity of 11, while the rest of 1.  These items total $81.09, which Quickbooks reflects accurately in my corresponding invoice.  I've attached a picture of the invoice for you to take a look at.

 

When calculating taxes at a rate of exactly 12%, the result is $9.71.  This is incorrect - the actual result is 2 cents higher:

 

$81.09 x 0.12 = ~$9.73

 

So according to the article, this is happening because each line item is being taxed individually, then rounded, and then summed up:

 

$1.59 x 0.12 = ~$0.19

$1.59 x 11 x 0.12 = ~$2.10

$0.19 x 29 + $2.10 x 2 = $9.71

 

Is my understanding accurate?

QuickBooks Team

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

That's correct. You're absolutely on the right track with that. It's always good to clarify, though.

 

If you have any other questions about this, please let me know and I'll help get it cleared up.

Level 1

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

I appreciate your help so far, thank you!

 

We run a website where only one product is sold.  Users can input a number of product per day, and then pay for it all in a single order at the end of the month.  Using quickbooks, we want to give users an option to download the invoice as a PDF, with items grouped by the date they were inputted.  To see an example of this, take a look at the image attached to my previous reply.

 

Using the API, is it possible to organize an invoice in this way without comprising the tax calculation?  In other words, can we force taxes to be calculated based on the subtotal instead of each individual line item? 

 

If not, one solution would be to create invoices with a only a single list item that contains the total quantity of the order.  Is this our only option, or are other be other solutions in place?

QuickBooks Team

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

Hi kaneesha,

 

That sounds like a great website you have going and I love your interest in using QuickBooks Online to enhance what you can offer your customers. What you've suggested as a solution would certainly work and may be your best option. Based on what the article my colleague shared with you states, QuickBooks Online will always calculate line-by-line. I've just tried playing around in a test account myself, and even adding subtotals doesn't affect this line-by-line calculation. I invite you to do some other tests yourself to see if there's anything else that might work for you. Other users here in community may have ideas as well.

View solution in original post

Level 1

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

Alright, that sounds good to me.  Thanks again for the help - you guys have some awesome customer service.  Have a good day!

QuickBooks Team

Re: If my subtotal is 95.40, and my GST/HST is 15%, the total tax should be 14.31. Quickbooks cal...

We're always happy to lend a hand when we can. :) Feel free to stop by again with more questions and I hope you have a good rest of your day, as well!