An invoice doesn't show the exact tax amount expected, based off the flat tax rate - it's off by a few cents.
- Small differences like this are generally due to Rounding.
- Rounding produces different results depending on whether Line or Document level rounding is set in Organization > Company Name > Company Settings.
- By default, the rounding level is set to Line where tax is computed on each line.
- Setting the value to Document level rounding results in the line level taxes to be summed to a total and then rounded to the nearest tenth of a cent.
- The states are aware of the possible 1 penny difference in these scenarios and have certified Avalara to use either method of rounding.
Note: If you use more than one accounting system with AvaTax, please make sure the invoice and/or order match between the two systems and both systems use the same rounding level.
For more information about rounding levels, see add a company.