Tax rounding discrepancies are a common issue in accounting. Suppliers may issue invoices where their system rounds the tax differently from your system. 


When balancing an invoice that has a tax rounding discrepancy, it is generally suggested to ensure that the total amount matches the supplier's invoice. This is because the total amount is what you are obligated to pay according to the supplier's invoice. 


However, upon processing an invoice via Ocerra, you may find that there is a difference in totals around 1 cent up or down on these invoices.


Important: Ocerra calculates tax and totals precisely as required by MYOB and Xero. We adhere strictly to the rounding rules specified by these systems to ensure accurate invoice entry. Consequently, we cannot force incorrect values into your accounting system. Therefore, you must adjust any discrepancies either before exporting the invoice from Ocerra or after it has been exported. 


In Ocerra, we flag invoices with rounding discrepancies by highlighting the amount as follows:

  • Yellow: For a 1-2 cents difference. 
    • Note that it will be still flagged as Yellow after you correct it, it is ok to export while it is still flagges as yellow.
  • Red: For over 2 cents difference.
  • Green: For no difference in calculations.


This allows you to manually adjust the tax rounding issue on the invoice in Ocerra before exporting it to your system.


Examples of How to Make Adjustments


In the example below, an invoice has a total amount of $115.73, however, due to supplier's rounding on tax, it will be entered as $115.72 unless you adjust in Ocerra or in your system after export:

In Ocerra, you can view that the total amount is not matching and there is a Tax Rounding Issue:



Here's an example of how to adjust it in Ocerra:


1. Click Add new line

2. Add Tax and Description and the amount, e.g.: 0.01




As you can see it will round the total to $115.73 and exact amount you need to pay to your supplier.


Disclaimer

Ocerra is not a tax or accounting advisor. For specific advice, please consult your accounting professional.