Client Query - Incorrect Pricing on Sales Invoice
Problem/Question
Sales order prices are a few pence out, why is this?
Solution/Answer
There are a number of reasons why this may be the case. Below are the most common reasons and a solution to correct it. Where there is a mismatch between the settings a priority will be applied, this will generally mean using settings as per Company Class. If it is a one off occurrence you can go to the ADDITIONAL tab of the affected sales order and change the calc method as required.
Difference in the calculations - NET or GROSS
It can be seen from the below calculations that there are differences in the resulting figure and care must be taken to ensure the correct method has been determined for your business operations.
- Sell Prices are NET
- Stock item sell price (NET)- £21.04
- Quantity purchased = 15
- Subtotal = £21.04 x 15 = £315.60
- VAT = (£315.60 x 1.2) - £315.60 = £63.12
- TOTAL = £378.72
- Sell Prices are GROSS
- Stock item sell price (GROSS) - £25.25
- Quantity purchased = 15
- TOTAL = £378.75
- VAT = (£378.75) - (378.75 ÷ (1 + VAT Rate)) = £63.12
- Subtotal = £315.625, rounded to £315.63