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

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

Penny Rounding Differences

From time to time, one cent (penny) rounding difference may occur between collected and paid-out amounts. This happens because different software systems may apply rounding in slightly different ways, which can result in a variance of $0.01.

Overriding tax 

In Loft, you can override the sales tax on the commissions page, simply override the calculated tax amount by 1 penny more or less, most times that solves the issue.

Another option is to override the taxes on the allocations page. You cannot override taxes on the deductions page (as they are set to taxable or not).

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



Payout Commissions

  • Go to the Payout page after recalculation.
  • Expand the agent’s payout using the dropdown arrow.
  • You’ll see a $0.01 adjustment in allocations or deductions, keeping the payout balanced.

This keeps both totals equal (e.g. $2,325.00) 




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