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How are Bill Subtotals Calculated?

Objective:

  • Why is there a difference between Time Keeper Quantity times the Rate versus the Invoice's Subtotal?

Environment:

  • Clio Manage

Additional Information:

  • Clio also uses the same logic when applying Tax to Line Items. It first multiplies and rounds the Quantity and Rate before applying the Tax rate.
    • Tax = round(Xq * Xr) * Tax%

Answer:

  • Clio calculates the Invoice subtotal by adding together each of the Line Items individual totals. These Line Item totals are a result of multiplying the Quantity time the Rate followed by rounding the result.
    • Here is an example of what the equation would look like:
      Subtotal = round(Xq * Xr) + round(Yq * Yr) + round (Zq * Zr) + ...
  • Calculating the subtotal by multiplying the Time Keeper's Quantity and Rate ignores the individual rounding that occurs on each Line Item's total, they-by resulting in a slightly different subtotal than shown on the Invoice.
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