PortPro VAT Calculation Method

To ensure accurate and consistent financial reporting, PortPro calculates VAT using a precise, line-level method that minimizes rounding discrepancies. 

Line-Level VAT Calculation

VAT is calculated at the individual line item level, ensuring accuracy and consistency across all transactions.

Precision Handling

• All VAT calculations use a minimum of four (4) decimal places to maintain computational accuracy.
• Intermediate values are not rounded during calculation.
• Final VAT totals are rounded to two (2) decimal places for reporting and financial compliance.

Display Behavior

There are no changes to how VAT appears on customer-facing or financial documents.
Values will continue to be displayed and printed rounded to two (2) decimal places for clarity and consistency.

Rationale

Rounding at earlier stages of the calculation process can cause minor but compounding errors, leading to inconsistencies for users. By applying higher precision during calculation and deferring rounding until the final step, PortPro significantly improves accuracy and eliminates potential cumulative discrepancies.