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Sales Tax Spreadsheet formula help

  1. #1
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    Sales Tax Spreadsheet formula help

    Hello.
    I made a spreadsheet for computing sales tax in Pa. I am coming up with different amounts of sale tax when figuring tax on each item and when figuring tax on the total. attached is an example sheet. Rows 2-26 are individual items with the totals in row 28. Row 30 contains tax and price using the total in cell A28. I know that 3 cents is not alot but I think both figures should be exact. I hope I have explained this correctly.

    Thank you very much for replies,
    Chuck

    example.xls

  2. #2
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    Re: Sales Tax Spreadsheet formula help

    Its because you're rounding to 2 decimal places on each line in one instance and rounding the TOTAL sales to 2 decimal places in the other instance.

    Change your rounding to 4 place decimals and you'll see a difference.

    How is tax really applied? to each line item or to the sales total?

  3. #3
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    Re: Sales Tax Spreadsheet formula help

    I think the difference occurs because in row 28 you =ROUND() after calculationg the tax, whereas in row 30 you =ROUND() before calculating tax.
    Sincerely
    S?ren Larsen

    "Give a man a fish, and you'll feed him for a day. Give a man a fishing rod, and he'll steal your yacht!"

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    Re: Sales Tax Spreadsheet formula help

    Carsto:
    Each row in the example is a sale to a different customer. I can't charge someone $4.8113 tax. It would still be $4.81.

    S0ren:
    I really don't get what you mean. In B30 I am rounding on A28. As far as C30 goes, I could subtract B30 from A28 and still get the same figure ($120.28)

    Thank you both for the replies
    Chuck

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    Re: Sales Tax Spreadsheet formula help

    Yes, you are right. After having another look, it seems the values should be the same.

    I know that there are cases where, when taking the sum of certain fractions, the sum is calculated wrong by excel. On my work PC I have a good example of this; I'll try to remember to attach it tomorrow. It has to do with way Excel does its computing.

  6. #6
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    Re: Sales Tax Spreadsheet formula help

    Found another example:

    Try calculating the sum of the following:


    22500,24
    -254,24
    -22500,24
    127,12
    127,12

    I'm not sure if it's the same issue in your case, but nonetheless...

  7. #7
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    Re: Sales Tax Spreadsheet formula help

    replacing the comma with a period

    22500.24
    -254.24
    -22500.24
    127.12
    127.12

    excel gives 0.00 cells formatted as number
    calculator gives 0

    I must have your example wrong.

    Also, when I submit the form online, I enter the total sales (cell A28) $2,125.00 and the form online automatically calculates the tax. In this case it is $120.28 (cell C30). Whereas I only collect $120.25 (cell C28). This is only an example. In actuality over the course of a year it adds up to quite a few dollars.

    Thank you,
    Chuck

    This is a government form.

  8. #8
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    Re: Sales Tax Spreadsheet formula help

    When I enter it into Excel, it does not sum to 0. I'm on Excel 2007, perhaps you're on 2010 and the bug has been fixed. Anyway, I'm out of explanations at this point...

  9. #9
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    Re: Sales Tax Spreadsheet formula help

    I'm on Excel 2003

    Thanks for the help. I'll leave the thread open. Maybe someone else will chime in.

    Thank you very much,
    Chuck

  10. #10
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    Re: Sales Tax Spreadsheet formula help

    Ok. This is sorted out. I was figuring the tax in the wrong way.
    Thank you both for the replies.

    Chuck

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