Understanding how document totals are calculated

Accurate document totals are essential for financial processing and approvals. Zudello automatically calculates header-level totals based on line item data and specific settings. This guide explains how the subtotal, tax, freight, and total fields are calculated.

Best practices

• Ensure line item quantities, unit prices, and tax rates are entered correctly.
• Verify the Are the line totals inclusive of tax? toggle is set correctly based on the document data.
• Review calculated totals against the original document image to catch discrepancies.

Calculation logic

Zudello calculates header totals primarily by summing values from the individual transaction lines and landed cost lines.

1. Line Calculations: Zudello first calculates total exclusive and tax amount for each individual line item and landed cost line. See Understanding how line totals/taxes are calculated for details.

2. Document subtotal

   • This is the sum of the total exclusive values from all transaction lines (excluding landed cost lines).
   • subtotal = SUM(transaction line.total exclusive)

3. Document tax

   • This is the sum of the tax amount values from all transaction lines AND all landed cost lines.
   • tax = SUM(transaction line.tax amount) + SUM(landed cost line.tax amount)

4. Document freight

   • This is the sum of the total exclusive values from all landed cost lines.
   • freight = SUM(landed cost line.total exclusive)

5. Document total

   • This is the sum of the header subtotal, header tax, and header freight.
   • total = subtotal + tax + freight

Key considerations

• Tax Included Toggle: The Are the line totals inclusive of tax? toggle (tax included field on the transaction) directly impacts the calculation of tax amount and total exclusive at the line level, which in turn affects the header totals. Ensure this toggle reflects whether the line item total values on the original document include or exclude tax.
• Landed Costs: Lines identified as landed costs (often freight or handling charges) contribute their exclusive amount to the header freight total and their tax amount to the header tax total. They do not contribute to the header subtotal.
• Automatic Updates: These header totals are recalculated automatically whenever relevant line item data (quantity, unit price, total, tax rate) or the "Tax Included" toggle changes and the document is saved or recalculated (e.g., by applying trained rules).
• Rounding: Minor discrepancies (typically +/- $0.01) can sometimes occur between the sum of calculated line totals and the total shown on the original document due to rounding differences. Zudello provides validation extensions to help flag these.

Troubleshooting totals

• Incorrect Document Total:
  • Verify the Are the line totals inclusive of tax? toggle setting.
  • Check individual line item quantities, unit prices, totals, and tax rates for errors.
  • Ensure landed cost lines (freight) are correctly categorised and their values/tax rates are accurate.
• Incorrect Document Tax:
  • Check tax rates applied to each line item and landed cost line.
  • Verify the Are the line totals inclusive of tax? toggle setting.
• Incorrect Document Subtotal/Freight:
  • Ensure lines are correctly categorised as standard items (contributing to subtotal) or landed costs (contributing to freight).
  • Check line item quantities, unit prices, and totals.

Need help?

Contact your organisation administrator or Zudello support if you encounter persistent issues with document total calculations.