VAT Handling in Rezlynx

VAT within Rezlynx is calculated line by line on Individual Items / Products as opposed to the totals.

This can sometimes lead to rounding differences in the total reporting, whilst the invoices and individual transactions will remain correct. 

Example:

The Gross total of the Accommodation line shows 35,268.80 and if you were to find the Nett total from this figure by removing the 20% VAT, the value of 29,390.67 would be produced.
This would have represented the VAT liability only if the sales were based purely on a single total at this rate

Whereas, if you look at the individual transactions from the Postings report (for the same period) and sum together the VAT charged at 20% on each of the transaction lines, the total VAT output of 29390.24 is produced - technically correct as this represents the actual VAT liability passed to the customer.

We do have written confirmation from HMRC to state that our VAT calculation rules comply with the rounding rules set out under section 17.5 of the article link below.
https://www.gov.uk/guidance/vat-guide-notice-700

Below is an article link from HMRC relating to rounding on invoices.

https://www.gov.uk/hmrc-internal-manuals/vat-trader-records/vatrec12020