Autotask and Xero now supports four decimal places, you can activate four decimal places, under advanced settings in Xero Options in our console.
Xero and Autotask use slightly different methodologies to calculate tax rates this can lead to minor rounding differences between the two platforms.
Turning on 4 decimal place rounding in Autotask and Cloud Depot can reduce the rounding variances between the two platforms.
Please note four decimal place support needs to be activated in Autotask, no change is required in Xero.
Explanation of how Xero rounds tax amounts and why it is sometimes different.
Xero calculates its taxes per line-item, rounding each line-item, by default to two decimal places, it then takes all those calculations and adds them together to produce the taxable amount.
In our example below we demonstrate how this methodology can affect the end result.
Take for example two products sold in Xero. In this example we are using a tax rate of 10%.
- widget 1 for 1141.39
- widget 2 for 34.25
Xero calculates the GST @ 10% to be $117.57
Now take that same calculation and apply it in Microsoft Excel, notice how the total is out by 1 cent when compared to the Xero example above?
Below we show how this happens, as you can see calculating the tax on the line-item then rounding to two decimal places cause the difference in the calculation.
If your invoice has multiple line items, the rounding difference will be greater.