VAT within Rezlynx is calculated line by line on Individual Items or by products as opposed to the totals.
In the database, VAT is calculated to 4 decimal places for each individual transaction. In the reports and also on the invoices there are 2 decimal places. If you calculate the total amount for a large number of services, this can sometimes lead to rounding differences in the total reporting, whilst the invoices and individual transactions will remain correct.
Example:
The Gross total of the Accommodation line shows 35,268.80 and if you were to find the Nett total from this figure by removing the 20% VAT, the value of 29,390.67 would be produced.
⚠️Important: This would have represented the VAT liability only if the sales were based purely on a single total at this rate.
Whereas, if you look at the individual transactions from the Postings report (for the same period) and sum together the VAT charged at 20% on each of the transaction lines, the total VAT output of 29390.24 is produced - technically correct as this represents the actual VAT liability passed to the customer.
We do have written confirmation from HMRC to state that our VAT calculation rules comply with the rounding rules set out under section 17.5 of the article, and within the HMRC VAT traders manual.