Hi,
I have just had an invoice returned to me because the amount of VAT added to the invoice is 6p more than it should be!!!!! I have checked the amount myself and the figures are just wrong. There are 11 items at £75 each and VAT is 17.5%. This works out at £969.37 where as Solar works it out at £969.43.
Has anybody else had this problem?
Dan
Hi Dan,
Solar Accounts calculates and rounds the VAT on each invoice line. In your case it has calculated the VAT as follows:
Line 1 VAT: £13.13
Line 2 VAT: £13.13
...
Total VAT: £144.43
To directly set the VAT amount on each line, click the 'VAT' link below the Subtotal field. Alternatively, just enter all 11 items on one line.
Regards,
Surely VAT should only be calculated from the invoice sub-total, not the sum of rounded items? Customers' expectations and the layout of the auto-generated invoice itself would suggest this is how it should be done. I would have also complained about the 6p extra if I had the time to hand-check all my invoices!
Clearly putting different items all on the same line is not a very practical solution, and neither is calculating the VAT and entering by hand every time.
Can this be changed for the next release?
Hi Matt,
I agree it's counter-intuitive. However, the 'line-by-line' method in Solar Accounts is common to many accounting software products. This means that when entering a purchase invoice the VAT amount calculated by Solar Accounts is more likely to match the VAT amount shown on the supplier's invoice.
We'll note your suggestion about providing an alternative VAT calculation as a feature request in our system. However, we cannot make promises about future development of Solar Accounts.
Regards,
HI
Can I 'Lock' the Line by Line Vat Screen? Most of my supplier invoices are having to be amended by 1p & it's an extra step having to go into VAT & saying yes. I know Lazy or what!!!
Carol
PS I've been using Solar on my MAC for a couple of months now & 'Touch Wood' it's been excellent & easy to understand, I used Sage for over 20 years & wouldn't go back to it if they offered to pay me. Well Done & Thanks
Hi Carol,
Glad to hear you like Solar Accounts! Unfortunately you cannot tell Solar Accounts to always show the VAT Amount column on purchase invoices - you will need to click the 'VAT' link each time. Sorry!
Regards,
