Change how AvaTax rounds the tax amount
This article applies to:AvaTax
The rounding level controls how AvaTax rounds the tax amount for a transaction. AvaTax can round tax amounts at the line-level or document-level. If you're not sure, leave line-level on.
Steps
- In AvaTax, go to Settings > All AvaTax Settings.
- On the Settings page, select Manage next to Advanced Company Settings.
- Turn line-level rounding on to:
- Round the tax amount to two decimal places for each tax line
- Discard the rounding difference
- Add the tax amounts of each line together to get the total tax amount
- Occasionally calculate the sum of each line as a penny less or more than with document rounding
- Turn line-level rounding off to use document-level rounding, which:
- Calculates the tax amount for each line (without rounding), adds those amounts, and then rounds the total to two decimal places
- Eliminates the occasional rounding inequality experienced with the line-level method by redistributing the rounded amounts
- Turn line-level rounding on to: