How can there be rounding differences in the FA posting?
Rounding differences often arise due to the calculation of tax on individual items compared to the calculation of VAT on the total amount.
Example: Sale with two VAT rates (7% and 19%)
Tax calculated on individual items
Tax calculated on total amount
Net 7% = € 69.90 (19.95 + 49.95)
Net 19 % = € 99.95
Difference 0.01 Euro
Items are output individually or summarised and calculated per revenue account for FA exports
Accounting entries with rounding difference
Without rounding difference (after individual calculation)
Bank/cash (gross) EUR 193.74
to revenue 7% (69.90 EUR)
to revenue 19% (99,95 EUR)
to VAT 7% (4.89 EUR)
to VAT 19% (18,99 EUR)
With rounding difference (after totals calculation)
Bank/cash (gross) EUR 193.74
to revenue 7% (69.90 EUR)
to revenue 19% (99,95 EUR)
to VAT 7% (4.89 EUR)
to VAT 19% (18,99 EUR)
to rounding difference account (EUR 0.01)
Rounding differences inevitably occur when subtotals are converted. Even if the FaA revenues are not condensed by revenue accounts/tax rate combinations (administrative setting), rounding differences will occur, as the export and rounding is then carried out per item.
How can rounding differences be avoided?
- Invoices in Bp Event must be gross invoices, the FA accounts must also be gross.
- Invoices in Bp Event must be net invoices, the FA accounts must also be net.
Note: if multiple accounts are addressed in the FA, there will be multiple rounding operations -> rounding difference