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Subject :Sales Tax calculations.. 06-24-2010 01:01:47

9932

Power User

Joined: 03-19-2009 23:29:36
Posts: 47
Location: New Brunswick, Canada

Avimark is planning on releasing an update that provides for calculation of the HST. This is a sales tax that combines federal and provincial sales taxes for transactions. Since we began using Avimark over a year ago, I've noticed that the Avimark sales tax calculation (for us, this is the HST) consistently under-calculates the tax amount by one to several cents per day. This is a small amount, but would add up over a year, and I suppose that the vet hospital would be liable for the difference.

I'd suggest examining the algorithms used to caculate tax be checked and modified if necessary.

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Subject :Re:Sales Tax calculations.. 06-29-2010 06:20:47

Jeremy-AVImark

Advanced User

Joined: 02-11-2009 12:49:44
Posts: 693
Location:

The tax is rounded according to banker's rounding for each invoice. At the end of the month, the total tax is added up on the Period Totals which will not always equal Total Charges multiplied by Tax Rate. This is the amount of tax you have collected from your customers on the invoices for the time period.

For example, say you have something priced at $8.95 and charge 12% sales tax, it would be $1.074 in tax for each item you sold, rounded to $1.07. If you had two clients that came in and purchased one each, their tax would show $1.07 on each invoice for a total of $2.14 tax collected. But their total on the Period Totals would be $17.90 which multiplied by 12% would be $2.148 which would round to $2.15 for a $0.01 discrepancy.

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This posting has been authorized by McAllister Software Systems, LLC and was written by Jeremy Bennett, Client Relations Manager

Subject :Re:Sales Tax calculations.. 07-15-2010 11:39:52

9932

Power User

Joined: 03-19-2009 23:29:36
Posts: 47
Location: New Brunswick, Canada

Well, in nearly all cases of our daily report totals, Avimark under-estimates the sales tax that should have been collected (in comparison with Quickbooks, where calculations of sales tax almost always match the tax charged by our suppliers). Therefore, I don't see how this is just a rounding issue - I think it might be related to a deficiency in the algorithm used by Avimark to claculate the tax. In any case, we'd like to have the option of turning off rounding for the daily total reports. We enter daily report data into Quickbooks manually and then use QB to record amounts of tax collected.

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Last Edited On: 07-15-2010 14:36:13 By 9932 for the Reason

Subject :Re:Re:Sales Tax calculations.. 03-10-2011 04:37:24

draike13

Power User

Joined: 12-02-2010 04:29:24
Posts: 43
Location:

9932 Wrote on 07-15-2010 11:39:52:

We actually do our inputs and tax amounts by hand and them match them with avimark. Our tax rate is currently 7.975%. We experience the same problem on occasion, where avimark is "rounding" differently. We always accounted this as a different rounding method, but now im thinking that there is a glitch in the program.

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