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. 


 



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