Q. Why is the VAT on my invoice calculating incorrectly?
A. How VAT calculations are rounded may impact the total VAT amount.
When calculating VAT on an invoice, there are 2 calculation methods that can be set up in the CONFIGURATION > Accounting page. This is typically configured as part of the initial account configuration, and once set cannot be updated.
The 2 options available are:
Calculate VAT on invoice total. Sum all charge lines and VAT is applied to the total of all charges.
Sum VAT per charge line. VAT is calculated and rounded to 2 Decimals on each individual charge line.
Which option to select may be determined based on the accounting package used, as the rounding may impact matching how they calculate. Once configured reach out to the Qargo Account Manager for any changes.
Reach out to your Qargo Account Manager if updates are required to configuration.