India Round up/off processing

[Krishnasarma]

I have a sales of goods bill as follows:

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SNO | Description | QTY | Price | Discount | Total
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1 Conv. Belt 2 150 10% 270.00
2 Lubricant 1 50 5% 47.50
200 ml
IGST@18 48.60
Total 366.10
Round off -0.10
Bill Amount 366.00
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Now I want to post this into our accounts. I am not an accountant at core, but have some knowledge.

I have created a ledger for each trading item and Tax. But not sure how and where to post the Round off or any other charges levied after the tax. Can some one help in resolving this or correct me if I am wrong.

Thanks
Krishna

 

[Steve-LevelUp]

My recommendation if you need the Bill amount to be a round number, that you are effectively discounting the sale price of one of the items.

So, you could reduce the sale price of the conveyor belt by $0.10 (or a slightly less amount, as the total taxes paid will change) to reflect the discount the customer will pay.

Or, you can have a separate line item called Sales Discounts (a net revenue account) and record the $0.10 there.

I believe the customer should just be billed the $366.10, but sometimes these little issues do come up and it's not usually chasing a customer for $0.10.