@James is wording my question better than I am, so I figured I'd put this here:
I believe what you are asking is that you have a bullet moving in a game with a fixed timestep and that when the bullet collides with something, the time step usually makes the bullet go Past where it would have actually hit making it look like the bullets hit some where beyond where it actually hit.
I'm shooting a projectile in a 2D topdown game. The unit can shoot in 360 direction. There's no gravity, there's no arc and it moves at a constant speed (although this last point may change in the future). It's easy to find the point of the unit and the destination of the bullet, but how do I know when the bullet has hit it's destination?
I'll be more specific. The bullet probably won't land directly on the point it was intended to because it moves a certain distance based on the delta of time. The bullet will often be in a state where it will overshoot the destination on the next tick.
How do games usually handle this? I can imagine pros and cons to "always overshoot" and "always undershoot".