In order to accurately represent tax rates, especially those to three or more decimal places, the unit price and line total for Tax line items will display three decimal places when appropriate. The 3-decimal option is on by default. Change to 2-decimal places from Admin > Company > Configuration, check the box Enable Two Decimal Tax Rounding. It is strongly advised that Agencies would only make this change for a fresh financial period. i.e. after financial processing is complete for the previous month for example.
- Generally tax line items with three decimals will only display when there is a tax rate with more than two decimal places applied, such as 13.975%
- If a tax line item calculates at one or two decimal places, two will be displayed
Here are some examples of how different combinations of taxable amount and tax rates will display:
This will display across Invoices, Payments & Credit memos, Previews, and for all payable item types. It will also display to three decimal places in Financials for Customer and Interpreter* portals for consistency.
*At this time it will not show in the Interpreter Portal Job Close view. This will be adjusted with a future release.
Here is an example of an invoice displaying the tax rate to three decimals, the unit price and line item for the tax to three decimals, and the sub total rounded to two decimals. Please note that the calculations for the sub total tax and total will calculate to three decimal points then round after the calculations are completed.
Additional Notes
- Tax line items will only apply when the 'taxable' flag is checked and the 'tax rate' has been applied at the company or rate plan level.
- Tax rates set at the rate plan level override the company tax rate
- If an interpreter is registered for tax and has a tax rate set on their interpreter profile, this will override tax rates at the company and rate plan level for their payment.
Please click here for our article on Setting up and Using Tax Rates for additional information.