sage gross to net vat calc on a line by line basis

[jsgraver]

hi everyone
anyone come across this one?
i am selling (hypothetically) 1000 different transistors on a sales invoice at 3p gross sales value
when i enter on a line by line basis in sage and pressing the gross to net calc button the vat value is returned as nill !!!!!
surely it should be 0.5p as per vat guide section 17.5..............you cannot round down any taxable supply to zero on a line by line calculation
I have the decimal place setting to 6 decimal places in sage
I would appreciate any help
thanks

[brucedenney]

You can "according to my interpretation of the guide" calculate the line vat amount rounded down to the nearest 0.1p or up or down to the nearest 0.5p or 0.1p but not round down to 0.

Sage 50 only offers 1 option and that is to round to the nearest 1p on each line. It does not offer rounding to tenths of pennies and it does not comply with the not rounding down to 0 rule.

If in real life a user did raise large numbers of very low value invoice items, (where this would cause a problem), there would already be issues with the database performance so Sage 50 would not be a suitable product anyway.

Just to be a devils advocate, I would say that if you are selling at 3p including VAT then you are "retailing" in which case section 17.6 applies.

This says you can not round down the VAT figure down, but that on each line level calculation you can round up or down, so each line can be rounded down to zero, the total is then zero as zero is a whole number it does not get rounded so it is not rounded down to zero, it just is zero.

[jsgraver]

thanks for the speedy reply
i agree with your comments 100%
so i wont be using sage!!!!!

[brucedenney]

Defo not a good idea if you have huge numbers of items on invoices.

You really need something that talks to a database server not a simple desktop product.