Lightspeed + Shopify Rounding Error

The Hyperspace integration downloads sales from Shopify into Lightspeed. Hyperspace has complete control over the customer data, product data, payment data and more. Hyperspace does not have control over the tax calculations. This is all handled inside Lightspeed.

Although, Hyperspace does have control over which tax code is used in Lightspeed to calculate the tax for each sale.

How does Hyperspace ensure that the taxes are applied to the sale perfectly?

When syncing a sale to Lightspeed, Hyperspace examines the taxes on the sale in Shopify. It then examines the available tax codes that it can apply to the sale in Lightspeed. If it cannot find a tax code that will perfectly calculate the tax to the penny, Hyperspace creates its own tax code in Lightspeed. It tells Lightspeed to use that specific tax code when calculating taxes on the sale.

Rounding Errors

Shopify calculates its sales tax and rounds to 2 decimal places. When Lightspeed calculates its taxes it rounds to 4 decimal places.  These are not settings that you change in either system.

Hyperspace has several algorithms in place to get the 2 systems to sync perfectly, but a rare anomaly is possible. It is possible that the tax could be offset by .051 cent. In this case, the order will download to Lightspeed, but it will appear as incomplete.

For example, we had a client with order #10050 with a deviation offset of 0.523. Our algorithm will complete all orders with a deviation offset of .5 or less automatically. 

Hyperspace can put in logic to ensure that this issue occurs less than .01% of the time, but since we cannot control the tax calculation or modify rounding rules in both systems, the chance of an order coming into Lightspeed with an incomplete status and a tax difference of .01 cent is possible.

 

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