Calculating Discount

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
When calculating discount on an invoice do you round up the amount?<BR><BR>For example <BR><BR>Invoice Net total: £477.44<BR>Discount of 4% within 7 days: £19.0976<BR><BR>So is the discount £19.10 or do you just truncate the figure to £19.09??<BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    most calculators would have rounded that up already for u!<BR>We always round to nearest value.<BR>So £19.10 would be what i would have used.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    Are you sure because on VAT you don't round up you just truncate?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    Officially Inland Revenue says you round down for VAT but most accounting packages round to the nearest penny whether that be up or down. <BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    i agree with annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    For discount round up and Vat round down
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    I was told discounts round up and VAT round down.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Calculating Discount

    Some assessment papers actually specify you round discounts down as with the VAT so watch out for this, don't just assume you always round up. Although I would round up if nothing was specified.

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