If you use external applications such as accounting software or a point of sale (POS) system to manage your business, you may notice a slight variance in price and tax calculations for an order compared to the amount calculated in DecoNetwork. The discrepancy is due to the way in which rounding is handled.
In DecoNetwork, tax is calculated and rounded at the line item level. Numbers are rounded to two decimal places and then line item amounts are added together to give you the total. Lots of small transactions, when summed from rounded numbers, can generate a different result to applying tax at the order level.
To illustrate here's an example of rounding at the line item level:
Price | Tax | Tax Total | Line Total | |
Line Item 1 | $25.99 | 10% | $2.60 | $28.59 |
Line Item 2 | $36.55 | 10% | $3.66 | $40.21 |
Line Item 3 | $14.25 | 10% | $1.43 | $15.68 |
Subtotal | $76.79 | $7.69 | ||
Order Total | $84.48 |
If you apply tax at the order level the result will be as follows:
Line Items Subtotal: $76.79 + Tax @ 10%: $7.68
Order total: $84.47
Apart from how prices are calculated, there is also the store price rounding setting that determines how prices are rounded. See the help article, How to Edit your Store Price Settings, for information about this setting.
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