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Small and medium business | Business Central, N...
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VAT is being rounded up wrongly

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Posted on by 95

I am baffled by this behavior of BC rounding up the VAT Amount.

My BC has Local Currency setup as USD and VAT Rounding Type set to as Nearest;

5040.gl-setup.png

Here is my currency setup for AED;

currency-setup.png

When I create a PO in AED with Total Value without VAT as 50, with 5% VAT 52.50;

document-lines.png

The VAT Prod. Posting V1 with VAT Bus. Posting is configured to be 5%

2844.vat-posting-setup.png

But when I do preview posting to check the ledger values of this document;

I get VAT as 0.69. Which is not correct.

If my base amount is 50, then 50 * 0.05 is 2.5 which is correct VAT. Now if we do 2.5/3.6725 it is 0.6807. So why is or how is BC rounding it up I can't figure out and its been 4 days now.

preview-posting.png

I am really grateful if someone here can point it out from me.

I have the same question (0)
  • Suggested answer
    Bilal Haider Profile Picture
    485 on at

    Hi,

    As per my knowledge VAT rounding depends upon the Amount Rounding Precision that you have setup in G/L Setup. Please check what Amount Rounding Precision you are using ?

  • Mesam Profile Picture
    95 on at

    Amount rounding precision is shown above in the screenshot.

    It is 0.01.

    Please note this is a standard BC behavior for us this is why I am baffled. All extensions were uninstalled to be sure it isn't some developer's code messing it up but still it would round up.

  • Suggested answer
    Marco Mels Profile Picture
    Microsoft Employee on at

    Hello,

    If you are not getting further responses from the community, please consider to raise a ticket to Microsoft via your partner or CSP.

    Thank you.

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