Re: [OFBiz] Users - VAT and rounding

Posted by T E Schmitz on Oct 05, 2005; 2:17pm
URL: http://ofbiz.116.s1.nabble.com/OFBiz-Users-VAT-and-rounding-tp135121p135128.html

David Garrett wrote:
> Out of interest why are there differences in the vatAmount
> vatAmount = 16.097 or 16.095 or 16.098
> depending on which algorithm you use and on whether you are a retailer or
> wholesaler.

The VAT Guide describes several rounding modes (unfortunately fails to
be specific enough for invoicing at retailers).

For our example
gross = £123.45
vatRate = 15%
vatFraction = 0.1304
==> vatAmount = 16.09788

Invoicing at line level (B2B)
a) round down to nearest 0.1p -> 16.097
b) round to nearest 1p or 0.5p -> 16.095

For invoicing at retailers, rounding *down* is forbidden:
c) round to nearest 0.1p -> 16.098

> Thanks for the excellent summary.

Sadly, I seem to spend more time in accounting newsgroups than in Java
newsgroups. ;-)


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Regards/Gruß,

Tarlika Elisabeth Schmitz
 
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