Issue
You may have noticed that your Total Project Value price is a few cents off. This is most likely caused by our calculation rounding.
When using a Fixed Sell Price for your Estimate there can sometimes be a few cents difference between the Estimate Raw Cost (incl. Markup) + GST. We follow Xero’s calculation rounding in cases where a total has a difference of +/- $0.10. For anything more or less than that we don’t apply rounding to the total.
Xero’s Calculation Rounding
Xero may calculate line item or document totals in ways that are slightly different to other applications. Neither approach is necessarily incorrect, just slightly different. This guide documents possible scenarios.
Line Item Totals
Xero calculates tax on a per line basis, rounding to two decimal places, and then sums the tax totals of each line to calculate the total invoice tax. Other systems may total lines and then calculate the tax amount, which can lead to a slight variance.
Eg:
Invoice line 1: Product A @ $25.06, tax at 15%: $3.76 line total: $28.82
Invoice line 2: Product B @ $25.61, tax at 15%: $3.84 line total: $29.45
Invoice line 3: Product C @ $25.63, tax at 15%: $3.84 line total: $29.47
Xero totals: Subtotal: $76.30, Tax: $11.44
Xero document total: $87.74
Another system total: Subtotal: $76.30 + Tax @ 15%: 11.45
This can be illustrated below in Xero as the approach is the equivalent of just having one line in Xero:
If you are experiencing a different issue or need more help with this, contact our Rave Support Team.