How to Adjust Penny Rounding Errors on Sales Tax on a deal.

How to Adjust Penny Rounding Errors on Sales Tax on a deal.

Every once and while you'll have a penny rounding error between what you're collecting and paying out. Softwares will round calculations differently so this is a problem that sometimes plagues us on paying out deals. 

Overriding the tax overrides

In Loft, you can override the sales tax on the commissions page and the allocations page but not on the deductions page (as they are set to taxable or not) and not on the override page for paying out partial deals. 

In the case where you are overriding a payout allocation and deduction, the calculation of the sales tax might not give you the actual net amount you need to payout. If you need to round one penny up or down you can do that by making adjustments on your allocations and deductions by one penny. 

On the Allocations Page:

Step 1: Change the allocation amount to be either $.01 penny more or less

Step 2: Loft will ask that you assign that one penny so you can add another allocation line

Step 3: Add the $.01 penny to the allocations and enter 0 for the taxes

Step 4: Loft will adjust the first allocation line to be the difference between the total and the one penny



       On your Deduction Page:

Step 1: Create a non taxable deduction type

Step 2: Add the non taxable deduction type to the Agents fees

Step 3: Increase or decrease their regular deduction by $.01

Step 4: Add the opposite $.01 to the non taxable deduction


 

This will now calculate the correct net amount for the deductions and the correct total for your Allocation lines: 



       Pay out Commissions

Head over to the payout page when once the deal recalculates, click the dropdown arrow next to the agent's name to expand their payout details, there you'll see that the addition of one penny on the allocation line and a reduction of one penny on the deductions keeps the payable in balance. 

The allocation is increased by one penny matching the deductions which are reduced by one penny making the total of each $26,600.17 for a zero dollar payout for this business owner. 


 



    • Related Articles

    • SK tax in Loft47 - How to deal with List side deals

      On List side deals in Saskatchewan the Listing brokerage is responsible for collecting the full amount of sales tax 11% which is made up of 6% PST and 5% GST.   To enable this to happen in Loft47 the following steps must be taken  IN LOFT 1. UPDATE ...

    • Determining duplicate errors

      How do I figure out if my contact used on a transaction is a duplicate? Click the deal's link in the error list On the transaction's page, look for the un-posted transaction, then select and right click the contact and paste in your Brokerage's ...

    • Why is my transaction not posting to my accounting software?

      Are you finding that a transaction or two are not posting over to Xero/QuickBooks? This would be due to batching errors. In this article we outline the following: Activity Page Dashboard Dashboard Breakdown Troubleshooting Errors List of Known Error ...

    • Adjusting your tax settings

      Adding/Updating Brokerage Tax ID Head to your Brokerage menu (the menu with the gear cog), click Edit Settings Add/update your Brokerage's Tax ID Turning on Tax Reporting In your Brokerage Menu>Settings, scroll down to the Allowable tax year field ...

    • Canadian QuickBooks Online Sales Tax Postings and Filing

      Unfortunately, the QuickBooks Online API will not allow Loft to post sales tax the same way we are able to in Xero. In an Agent's payout we post a bill to be paid to the Agent. This bill will include posting the top line commission expense and income ...