Sales Tax in MS-POS

In Microsoft Point of Sale, the tax amount on the Z-Report (which is correct) does not match the tax listed in the Sales Tax Analysis Report. It is only off by a few cents. Any idea why the discrepancy and how to remedy?

Reply to
POS4eyes
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It's probably due to rounding. Since taxes are carried out to more than 2 decimal places, but taxes are only collected to the penny, taxes are rounded up or down.

With multiple tax authorities (such as City and State), there are two ways this can be done.

1) Calculate the taxes for each tax authority (such as City and State), round them separately, then add them together. City tax could be $.235 rounded up to $.24. State could be $.5275 rounded up to $.53 for a total of $.77 ($.24 + $.53)

2) Calculate the taxes for each tax authority, add the taxes, then round them. City tax could be $.235 and state could be $.5275. Added together, the tax is $.7625 rounded down to $.66.

This shows a difference of a penny on the same taxes.

What seems to be happening is that the "Z" report is doing the first calculation since it's reporting Sales Taxes (not tax authorities), and the Tax Analysis report is doing the second calculation since it is reporting Tax Authorities (not sales taxes).

The good news is that you are always collecting the right amount for the individual tax authorities. When it comes to tax time, I suggest you go with the figure on the Tax Analysis report since that is calculating

So, for a remedy, look at the Z report as an interim report - a ball park figure. Look at th Tax Analysis report as the real McCoy - the tax you actually pay to the tax woman.

Darril Gibson

"POS4eyes" wrote:

Reply to
Darril Gibson

For this client, we did not set up multiple tax authorities, just a simple sales tax of 6.5%. Your theory does make sense though. Tax is rounded up to the nearest penny during a sale, but for reporting, the rounding probably happens after adding the individual tax charges (rather than adding the rounded amounts). That might explain why the report shows $0.05 less than the Z for the same day.

Did I read somewhere that there was a hot fix that deals with round> It's probably due to rounding. Since taxes are carried out to more than 2

Reply to
POS4eyes

POS4eyes,

Description of the rounding rules in Microsoft Point of Sale

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Must have access to CustomerSource to read it.

Reply to
Jeff

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