While testing the GL accounting transactions I've found something that
could be an issue in the procedure that computes the sales tax adjustment for the invoice. I've noticed that the InvoiceItem.amount for sales tax contains sometimes a number with 3 decimals, even if the arithmetic.properties file we have: salestax.calc.decimals = 3 salestax.final.decimals = 2 salestax.rounding = ROUND_HALF_UP You can recreate this by creating and invoicing a sales order for 3 units of GZ-1000. For example, look at this invoice: https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 Having 3 decimals is an issue for the gl auto posting service for sales invoices because the sales tax item generates an AcctgTransEntry, but the AcctgTransEntry.amount field can only store 2 decimals. I'd appreciate suggestions/hints. Cheers, Jacopo |
I believe the best solution is to step back and make some high level
design decisions having to do with math. I believe a complete path map of processes first needs to be generated to see when the "final" figure is done. for instance when an invoice is sent. It may be time to refactor where the calculations are done to get a invoice "final" figure so the Accounting will flow properly. Testing should be run to make sure the "Final" figure, matches when two different processes do the calculation. Jacopo Cappellato sent the following on 1/7/2008 6:14 AM: > While testing the GL accounting transactions I've found something that > could be an issue in the procedure that computes the sales tax > adjustment for the invoice. > I've noticed that the InvoiceItem.amount for sales tax contains > sometimes a number with 3 decimals, even if the arithmetic.properties > file we have: > > salestax.calc.decimals = 3 > salestax.final.decimals = 2 > salestax.rounding = ROUND_HALF_UP > > You can recreate this by creating and invoicing a sales order for 3 > units of GZ-1000. > > For example, look at this invoice: > > https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 > > > Having 3 decimals is an issue for the gl auto posting service for sales > invoices because the sales tax item generates an AcctgTransEntry, but > the AcctgTransEntry.amount field can only store 2 decimals. > > I'd appreciate suggestions/hints. > > Cheers, > > Jacopo > > > |
In reply to this post by Jacopo Cappellato
Hi Jacopo
My understanding of calc and final: calc - adjustment level rounding final - the sum of all tax adjustments (tax total) is rounded to this precision Perhaps AcctgTransEntry.amount needs to store to a higher precision as well? Regards Scott On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: > > While testing the GL accounting transactions I've found something that > could be an issue in the procedure that computes the sales tax > adjustment for the invoice. > I've noticed that the InvoiceItem.amount for sales tax contains > sometimes a number with 3 decimals, even if the arithmetic.properties > file we have: > > salestax.calc.decimals = 3 > salestax.final.decimals = 2 > salestax.rounding = ROUND_HALF_UP > > You can recreate this by creating and invoicing a sales order for 3 > units of GZ-1000. > > For example, look at this invoice: > > > https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 > > Having 3 decimals is an issue for the gl auto posting service for sales > invoices because the sales tax item generates an AcctgTransEntry, but > the AcctgTransEntry.amount field can only store 2 decimals. > > I'd appreciate suggestions/hints. > > Cheers, > > Jacopo > |
Administrator
|
From: "Scott Gray" <[hidden email]>
> Hi Jacopo > > My understanding of calc and final: > calc - adjustment level rounding > final - the sum of all tax adjustments (tax total) is rounded to this > precision > > Perhaps AcctgTransEntry.amount needs to store to a higher precision as well? Yes, I agree with Scott's suggestion Jacques > Regards > Scott > > On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: >> >> While testing the GL accounting transactions I've found something that >> could be an issue in the procedure that computes the sales tax >> adjustment for the invoice. >> I've noticed that the InvoiceItem.amount for sales tax contains >> sometimes a number with 3 decimals, even if the arithmetic.properties >> file we have: >> >> salestax.calc.decimals = 3 >> salestax.final.decimals = 2 >> salestax.rounding = ROUND_HALF_UP >> >> You can recreate this by creating and invoicing a sales order for 3 >> units of GZ-1000. >> >> For example, look at this invoice: >> >> >> https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 >> >> Having 3 decimals is an issue for the gl auto posting service for sales >> invoices because the sales tax item generates an AcctgTransEntry, but >> the AcctgTransEntry.amount field can only store 2 decimals. >> >> I'd appreciate suggestions/hints. >> >> Cheers, >> >> Jacopo >> > |
+1
On Jan 7, 2008, at 6:21 PM, Jacques Le Roux wrote: > From: "Scott Gray" <[hidden email]> >> Hi Jacopo >> My understanding of calc and final: >> calc - adjustment level rounding >> final - the sum of all tax adjustments (tax total) is rounded to this >> precision >> Perhaps AcctgTransEntry.amount needs to store to a higher precision >> as well? > > Yes, I agree with Scott's suggestion > > Jacques >> Regards >> Scott >> On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: >>> >>> While testing the GL accounting transactions I've found something >>> that >>> could be an issue in the procedure that computes the sales tax >>> adjustment for the invoice. >>> I've noticed that the InvoiceItem.amount for sales tax contains >>> sometimes a number with 3 decimals, even if the >>> arithmetic.properties >>> file we have: >>> >>> salestax.calc.decimals = 3 >>> salestax.final.decimals = 2 >>> salestax.rounding = ROUND_HALF_UP >>> >>> You can recreate this by creating and invoicing a sales order for 3 >>> units of GZ-1000. >>> >>> For example, look at this invoice: >>> >>> >>> https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 >>> >>> Having 3 decimals is an issue for the gl auto posting service for >>> sales >>> invoices because the sales tax item generates an AcctgTransEntry, >>> but >>> the AcctgTransEntry.amount field can only store 2 decimals. >>> >>> I'd appreciate suggestions/hints. >>> >>> Cheers, >>> >>> Jacopo >>> >> smime.p7s (3K) Download Attachment |
In reply to this post by Scott Gray
On Jan 7, 2008, at 11:04 AM, Scott Gray wrote: > Hi Jacopo > > My understanding of calc and final: > calc - adjustment level rounding > final - the sum of all tax adjustments (tax total) is rounded to this > precision > > Perhaps AcctgTransEntry.amount needs to store to a higher precision > as well? What Scott says above is correct as I understand it, but I'm not sure this last part is a good idea. Accounting/GL transactions are meant to be final and to avoid problems they are structured in a way where reporting just involves adding things up and using straight totals with no rounding, etc to avoid any biasing (with the exception of certain averages and such, but that is different as precision on those is used in a different way). It seems to me that posting anything to an accounting with more than 2 decimals of precision seems like a bad idea to me, except perhaps the infamous "rounding remainder" accounts. We should probably consult with an accounting before doing much of that sort of thing, but of course if we do change the AcctgTransEntry.amount to be higher precision we can always configure/code around it. -David > On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: >> >> While testing the GL accounting transactions I've found something >> that >> could be an issue in the procedure that computes the sales tax >> adjustment for the invoice. >> I've noticed that the InvoiceItem.amount for sales tax contains >> sometimes a number with 3 decimals, even if the arithmetic.properties >> file we have: >> >> salestax.calc.decimals = 3 >> salestax.final.decimals = 2 >> salestax.rounding = ROUND_HALF_UP >> >> You can recreate this by creating and invoicing a sales order for 3 >> units of GZ-1000. >> >> For example, look at this invoice: >> >> >> https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 >> >> Having 3 decimals is an issue for the gl auto posting service for >> sales >> invoices because the sales tax item generates an AcctgTransEntry, but >> the AcctgTransEntry.amount field can only store 2 decimals. >> >> I'd appreciate suggestions/hints. >> >> Cheers, >> >> Jacopo >> smime.p7s (3K) Download Attachment |
Perhaps we need to do 2 things:
1. Summarize AcctgTransEntries so that you have one entry per TaxAuthority rather than for each tax adjustment 2. During order/invoice processing, calc and final should be applied on a per TaxAuthority basis, so that we are only ever collecting final rounded amounts for each tax authority. So for example if we have invoice with the following adjustments: (I just made these numbers up, they don't relate to any percentages) UT_TAXMAN - $4.311 UT_TAXMAN - $7.397 UT_UTAH_TAXMAN - $5.643 UT_UTAH_TAXMAN - $16.828 Tax final would be calculated like this: UT_TAXMAN - $4.311 + $7.399 = $11.71 (2dp) UT_UTAH_TAXMAN - $5.643 + $16.828 = $22.47 (2dp) Tax Total = $11.71 + $22.47 = $34.18 Then the AcctgTransEntries would be: UT_TAXMAN = $11.71 UT_UTAH_TAXMAN = $22.47 Regards Scott On 08/01/2008, David E Jones <[hidden email]> wrote: > > > On Jan 7, 2008, at 11:04 AM, Scott Gray wrote: > > > Hi Jacopo > > > > My understanding of calc and final: > > calc - adjustment level rounding > > final - the sum of all tax adjustments (tax total) is rounded to this > > precision > > > > Perhaps AcctgTransEntry.amount needs to store to a higher precision > > as well? > > What Scott says above is correct as I understand it, but I'm not sure > this last part is a good idea. > > Accounting/GL transactions are meant to be final and to avoid problems > they are structured in a way where reporting just involves adding > things up and using straight totals with no rounding, etc to avoid any > biasing (with the exception of certain averages and such, but that is > different as precision on those is used in a different way). > > It seems to me that posting anything to an accounting with more than 2 > decimals of precision seems like a bad idea to me, except perhaps the > infamous "rounding remainder" accounts. We should probably consult > with an accounting before doing much of that sort of thing, but of > course if we do change the AcctgTransEntry.amount to be higher > precision we can always configure/code around it. > > -David > > > > On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: > >> > >> While testing the GL accounting transactions I've found something > >> that > >> could be an issue in the procedure that computes the sales tax > >> adjustment for the invoice. > >> I've noticed that the InvoiceItem.amount for sales tax contains > >> sometimes a number with 3 decimals, even if the arithmetic.properties > >> file we have: > >> > >> salestax.calc.decimals = 3 > >> salestax.final.decimals = 2 > >> salestax.rounding = ROUND_HALF_UP > >> > >> You can recreate this by creating and invoicing a sales order for 3 > >> units of GZ-1000. > >> > >> For example, look at this invoice: > >> > >> > >> > https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 > >> > >> Having 3 decimals is an issue for the gl auto posting service for > >> sales > >> invoices because the sales tax item generates an AcctgTransEntry, but > >> the AcctgTransEntry.amount field can only store 2 decimals. > >> > >> I'd appreciate suggestions/hints. > >> > >> Cheers, > >> > >> Jacopo > >> > > > |
Yes, okay, that actually makes good sense. It would basically be the same process of sum and round used for getting tax totals, but for accounting purposes justing summing per tax authority. I'd still like to hear from someone who knows about this from a regulatory perspective in at least a couple parts of the world so we can parameterize as necessary (or at least have a start in the right direction). In any case, this does sound like a good place to start. -David On Jan 7, 2008, at 10:17 PM, Scott Gray wrote: > Perhaps we need to do 2 things: > 1. Summarize AcctgTransEntries so that you have one entry per > TaxAuthority > rather than for each tax adjustment > 2. During order/invoice processing, calc and final should be applied > on a > per TaxAuthority basis, so that we are only ever collecting final > rounded > amounts for each tax authority. > > So for example if we have invoice with the following adjustments: > (I just made these numbers up, they don't relate to any percentages) > UT_TAXMAN - $4.311 > UT_TAXMAN - $7.397 > UT_UTAH_TAXMAN - $5.643 > UT_UTAH_TAXMAN - $16.828 > > Tax final would be calculated like this: > UT_TAXMAN - $4.311 + $7.399 = $11.71 (2dp) > UT_UTAH_TAXMAN - $5.643 + $16.828 = $22.47 (2dp) > Tax Total = $11.71 + $22.47 = $34.18 > > Then the AcctgTransEntries would be: > UT_TAXMAN = $11.71 > UT_UTAH_TAXMAN = $22.47 > > Regards > Scott > > > On 08/01/2008, David E Jones <[hidden email]> wrote: >> >> >> On Jan 7, 2008, at 11:04 AM, Scott Gray wrote: >> >>> Hi Jacopo >>> >>> My understanding of calc and final: >>> calc - adjustment level rounding >>> final - the sum of all tax adjustments (tax total) is rounded to >>> this >>> precision >>> >>> Perhaps AcctgTransEntry.amount needs to store to a higher precision >>> as well? >> >> What Scott says above is correct as I understand it, but I'm not sure >> this last part is a good idea. >> >> Accounting/GL transactions are meant to be final and to avoid >> problems >> they are structured in a way where reporting just involves adding >> things up and using straight totals with no rounding, etc to avoid >> any >> biasing (with the exception of certain averages and such, but that is >> different as precision on those is used in a different way). >> >> It seems to me that posting anything to an accounting with more >> than 2 >> decimals of precision seems like a bad idea to me, except perhaps the >> infamous "rounding remainder" accounts. We should probably consult >> with an accounting before doing much of that sort of thing, but of >> course if we do change the AcctgTransEntry.amount to be higher >> precision we can always configure/code around it. >> >> -David >> >> >>> On 08/01/2008, Jacopo Cappellato <[hidden email]> wrote: >>>> >>>> While testing the GL accounting transactions I've found something >>>> that >>>> could be an issue in the procedure that computes the sales tax >>>> adjustment for the invoice. >>>> I've noticed that the InvoiceItem.amount for sales tax contains >>>> sometimes a number with 3 decimals, even if the >>>> arithmetic.properties >>>> file we have: >>>> >>>> salestax.calc.decimals = 3 >>>> salestax.final.decimals = 2 >>>> salestax.rounding = ROUND_HALF_UP >>>> >>>> You can recreate this by creating and invoicing a sales order for 3 >>>> units of GZ-1000. >>>> >>>> For example, look at this invoice: >>>> >>>> >>>> >> https://demo.hotwaxmedia.com/accounting/control/invoiceOverview?invoiceId=CI1 >>>> >>>> Having 3 decimals is an issue for the gl auto posting service for >>>> sales >>>> invoices because the sales tax item generates an AcctgTransEntry, >>>> but >>>> the AcctgTransEntry.amount field can only store 2 decimals. >>>> >>>> I'd appreciate suggestions/hints. >>>> >>>> Cheers, >>>> >>>> Jacopo >>>> >> >> >> smime.p7s (3K) Download Attachment |
Free forum by Nabble | Edit this page |