Question:
Tax Calculation in Procurify
How many decimal places do Procurify round tax to?
How do the Bills round tax?
How does tax rounding work in Procurify?
Answer:
From a PO Level:
When creating a PO, the tax field is only calculated based on the SUBTOTAL of the line items.
When applying additional costs at the bottom of a PO (ie- freight, discounts), these will NOT be considered in the tax calculation.
Taxes are created as miscellaneous costs as soon as a PO is marked as received (or partially received)
From a Bill Level:
Using the Procurify Tax field on the line item level
When calculating tax during the billing stage, the tax field is only calculated based on the tax percentages applied to individual line items that have been selected.
When adding additional costs at the bottom of a Bill (custom costs that you may apply), these will NOT be considered in the tax calculation.
Before totaling all of the taxes on the bill, the tax amount for each line item is rounded to 2 decimal places after the calculation. Once the tax for each line is calculated and rounded, the total cost of tax for all line items will be added to the bottom of the Bill.
Taxes can also be added as a Cost Type for a bill. When using cost type, the tax amount must be manually entered
Additional Information:
At this time, there is no way to customize the fields that are considered when applying for tax.
Taxes are also rounded in Bill exports, which better supports other accounting systems. This method of calculating, rounding, and adding, generates proper totals and is more widely supported.