Rounding of pricing causes mismatch between PO and Invoice

[Production]

Some of the products we buy are sold for less than 1p. But on the PO the totals are rounded off, which can cause a mismatch with invoice from the supplier.

Can Sage be amended to work with 1/10th of a penny or is their an alternative solution to match up the supplier's invoice with the PO?

[brucedenney]

Rounding errors are common.

Sage calculates the VAT according to the rules in VAT1 - In essence this says that each line item has to have VAT calculated on it and rounded to 2 decimal places.
(Indeed with the latest version of Sage 50 it allows you to put a blanket discount amount against an invoice, in order to be able to do this and comply with VAT rules, the amount of discount has to be applied across all the individual items and the VAT calculated on each discounted line Item)

Some of your suppliers might not abide by the rules, or they might group items differently to your purchase order.

If you did change the rules in Sage then whilst for some suppliers it would be right for others it will be wrong, you have the opportunity to correct the amount when you update the ledgers so why not just use it?