Overview
When processing GST InvoiceNow transactions in Financio, you may notice a rounding difference between the line-level GST amounts and the invoice-level GST total. This is expected behavior and is not a software bug.
Financio does not allow manual rounding adjustments on GST InvoiceNow transactions, to ensure the data submitted to IRAS remains accurate and compliant.
Why This Happens
IRAS allows two acceptable methods to compute the total GST on an invoice when a customer purchases several items: applying 9% to the value of each individual line item, or applying 9% to the sum of all line items. The total GST computed may differ due to rounding depending on which method is used.
Importantly, IRAS does not require you to file a GST F7 correction for rounding differences where the GST computed by your accounting system is based on each line item while your invoicing system computes GST based on the sum of all line items (or vice versa) — provided you consistently round off the GST computed to the nearest cent (two decimal places) for all tax invoices and credit notes.
This means: no manual rounding adjustment entry is needed for the InvoiceNow submission itself.
Do I Need to Do Anything?
| Scenario | Action Required |
|---|---|
| Rounding difference between line-level and invoice-level GST | No action needed — IRAS does not impose validation between these amounts |
| You want your GST reporting to tally exactly with actual GST collected | Create a separate adjustment transaction (see below) |
Steps to resolve: Creating a Separate GST Adjustment Transaction
If you want your GST reporting and your sales/purchase records to match the actual GST amount after rounding, you will need to record a separate adjustment entry in Financio. This is separate from the InvoiceNow transaction and does not modify the submitted invoice data.
Steps:
- Identify the rounding difference amount (e.g. $0.01 or $0.02).
- Create a General Journal entry or a Credit/Debit Note for the rounding difference.
- Post it to your GST output tax account (for sales adjustments) or GST input tax account (for purchase adjustments).
- Ensure this adjustment is reflected in your GST F5 return for the relevant period.
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⚠ Important — do NOT tick “Send to IRAS” on this adjustment transaction. This adjustment is for your internal records and GST F5 reconciliation only. IRAS has already received the original invoice data, and the rounding difference is not an additional supply. If you tick “Send to IRAS”, Financio will transmit a separate InvoiceNow document for the adjustment — which does not correspond to a real transaction and will distort the figures IRAS already holds, causing a mismatch against your submitted data. |
IRAS Reference Links
| Resource | Link |
|---|---|
| IRAS – Invoicing Customers (GST rounding methods) | https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/basics-of-gst/invoicing-price-display-and-record-keeping/invoicing-customers |
| IRAS – Correcting Errors in GST Return (rounding FAQ) | https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/filing-gst/correcting-errors-made-in-gst-return-(filing-gst-f7) |
| IRAS – GST InvoiceNow Requirement | https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/gst-invoicenow-requirement |
Summary
This is working as designed. Financio intentionally prevents rounding adjustments on InvoiceNow transactions to maintain data integrity for IRAS submission. Customers who need their books to reconcile exactly should create a separate manual adjustment entry outside of the InvoiceNow transaction, and must not send that adjustment to IRAS.
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