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Xero Business Community

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Community > Tell us how we're doing >

Sales invoice: miscalculation of GST amount

Started by Margaret Knife -   in Tell us how we're doing

I raised an sales invoice, GST exclusive, which sub-totalled to $3,800 but Xero calculated the GST amount as $380.01 which is obviously incorrect. My husband, who is a very experienced programmer, has suggested that this looks like a 'floating point' calculation is being used in the background, rather than a 'decimal' calculation.

I worked around the problem by entering my invoice as GST inclusive, but I think this is a serious issue which needs investigating.
Official Xero Reply
Hi everyone, in case you haven't seen Mark's reasoning above on how we calculate tax, I've added it below:
At Xero we calculate tax on a line by line basis, because we offer tracking on lines and therefore each line needs to be able to create a balanced and correct journal. We do this so a tracked balance sheet or a tracked P&L will show the correct figures and your payables or receivables ledger will always balance to the general ledger.
Can appreciate that this may differ than it being calculated on a total (as by some other software programs), but there are reasons for this and it's not as simple as it may look.

One potential solution has been requested here - so you're welcome to take a look and subscribe to email updates so you can stay up to date on any changes.

Brittany H (Community Manager)