Tax Not adding up correctly?

GAWG · Post by **GAWG** » Sat Mar 27, 2004 4:41 pm

For a week's sales, the report said: grossed 81.97, taxes @4.5% for 3.22 and net 78.45

However, 4.5% of 81.97 is 3.69

Can anyone explain this discrepency? I will be going over the receipts tomorrow. All sold items have a tax rate of 1 which equals 4.5% on the tax table.

Thx

Bobby · Post by **Bobby** » Sun Mar 28, 2004 12:05 am

Hello,

I think that you just have this reversed.

$78.45 * 4.5% = $3.53
$78.45 + $3.53 = $81.98

the 78.45 is your net sales
the 3.52 is you taxes
the 81.97 is you sales + taxes

It is very likely that the totals are a penny off due to rounding issues with tax. In the actual sales, you are not multiplying the tax by the daily total, but by the individual sales total and due to the individual rounding, it is common for your tax to be off a penny up or down.

GAWG · Post by **GAWG** » Mon Mar 29, 2004 7:29 am

But even with that scenario, the tax is off between DHPOS and your estimates by 25+ cents. This wasn't a large month so I am wondering what will happen on a high volume month?

I will get a chance to look over receipts today and will post back.

GAWG · Post by **GAWG** » Wed Mar 31, 2004 8:16 am

Taxes do not seem to be rounding correctly as a tax figured on a calculator comes to 1.756 which according to rounding goes to 1.76 but DHPOS reports 1.75.

Feedback please?

Dale Harris · Post by **Dale Harris** » Wed Mar 31, 2004 9:46 am

Gawg,

If your tax rate is 4.5% and your selling price is 39.02 I get a tax of 1.7559 and if your selling price is 39.03 I get a tax of 1.7563, both figured on a calculator.

On the POS program if I ring up a single item for 39.02 at 4.5% tax then on both the receipt and the closing screen I get

Code: Select all

39.02
 1.76
-----
40.78

On the POS program if I ring up a single item for 39.03 at 4.5% tax then on both the receipt and the closing screen I get

Code: Select all

39.03
 1.76
-----
40.79

Both of which are correct.

I am using a single tax (left column only), tax on tax is off, tax is ADDED, and fraction of a penny is set to .50. What are your tax settings? What is your price that your used for your calculation? Are there several items in your sale or are there several sales?

Details are important.

GAWG · Post by **GAWG** » Wed Mar 31, 2004 5:29 pm

I'll grab some receipts tomorrow when I go in and post back

Thx for reply

Bobby · Post by **Bobby** » Wed Mar 31, 2004 6:02 pm

GAWG wrote:For a week's sales, the report said: grossed 81.97, taxes @4.5% for 3.22 and net 78.45

Hello,

I thought that maybe the numbers might have just got switched around (i.e. 3.22 really being 3.52) since the difference between the gross and net were 3.52.

Bobby

DHES

Tax Not adding up correctly?

Reversed

What is your selling price?

Re: Tax Not adding up correctly?

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