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# Calculations and Rounding in AroFlo

## Tax calculations

AroFlo calculates tax for each line item (unit prices allow up to 4 decimal places), then sums the tax totals of each line item to calculate the total tax value and rounds to 2 decimal places.

Accounting Integrations - Rounding Account

Your accounting package may use a slightly different calculation method which can result in a rounding discrepancy when posting data from AroFlo.

It is best practice to set up a rounding account within your accounting package specifically for handling rounding discrepancies. All of our accounting integrations support rounding account codes.

Your accounting package may use a calculation method which can result in a rounding discrepancy when posting data from AroFlo.

If the GST amount on your invoice is not exactly one-eleventh of the total price, you can adjust your layout to include a statement such as 'Total price includes GST'.

For more information, refer to Example 2 in the ATO documentation: Issuing Tax Invoices. ### Example of tax on a simple quote

Item 1: qty 1 sells @ \$43.176 + 10% tax = \$47.50

Item 2: qty 1 sells @ \$79.02 + 10% tax = \$86.92

Item 3: qty 1 sells @ \$144.576 + 10% tax = \$159.04

Labour: 3 hrs @ 55.00 + 10% tax = \$181.50

Sub totals: Labour = \$165, Materials = \$266.78, Total (ex. tax) = \$431.78, Tax = \$43.18.

Overall total (inc. tax) = \$474.96 The calculation breakdown allows you to clearly see the cost value, markups, tax and totals (ex/inc tax) for each item: ## Standard calculations

The following calculations are used for calculating line item values and totals in quotes and invoices:

#### Total excluding tax

If using a type markup (applies to LAB or MAT type items), overall markup or discounts, the total excluding tax value is calculated and only then rounded to 2 decimal places: #### Total tax

Total tax is calculated using the Total excluding tax (which may already be rounded to 2 decimal places). The Total tax value is then rounded to 2 decimal places. #### Total Inc Tax

Total Inc is calculated using the Total excluding tax (which may already be rounded to 2 decimal places). The Total Inc value is then rounded to 2 decimal places. ### New Tax Inc calculation

These calculations are used when the cost / sell prices already include tax.  The total ex can be written in two ways:  