Rounding Document Amounts

Your company policy or local regulations may require that you round the total amounts in invoices and bills.

In MYOB Acumatica, you can enable the Invoice Rounding feature on the Enable/Disable Features (CS100000) form. With this feature enabled, the system will round the document total amount according to the rounding rules that you have set up for accounts receivable and accounts payable. (You set up separate rules for each of these subledgers.)

If you have the Retainage Support or Payment Application by Line feature (or both features) enabled, the functionality of the Invoice Rounding feature is limited. That is, amounts in documents with retainage and documents paid by line cannot be rounded, while amounts in documents without retainage and not paid by line will be rounded.

For detailed instructions on configuring the rounding of document totals, see To Set Up Document Amount Rounding.

In this topic, you will read about the steps you perform to set up rounding and the details of how the rounding rules are applied.

Rounding Setup

In MYOB Acumatica, rounding is determined by settings that define the rounding rule, rounding precision, and rounding limit. You use the following forms to specify these settings:

• Accounts Receivable Preferences (AR101000): You use this form to specify the rounding rule and the precision that apply to AR documents of the following types: Invoice, Credit Memo, Debit Memo, Overdue Charge, and Cash Sale.
• Accounts Payable Preferences (AP101000): You use this form to specify the rounding rule and the precision that apply to AP documents of the following types: Bill, Credit Adj., Debit Adj., Prepayment, and Cash Purchase.
• Currencies (CM202000): You use this form to specify the system-wide rounding limit (the maximum rounding difference in the base currency, which is the difference between the rounded amount and the original document amount).

The system applies rounding rules to documents in all currencies (base and foreign). The rounding limit is set in the base currency but is applied to documents in foreign currencies as well. The system always recalculates the amounts of an invoice in a foreign currency to amounts in the base currency of your system, including the rounding difference. The system compares the recalculated rounding difference to the base currency with the rounding limit, and issues a warning if the limit is exceeded.

The rounding difference should be recorded to specific rounding gain and loss accounts. Depending on the policies established in your company, you can use a single gain account and a single loss account (and the corresponding subaccounts, if applicable) for all currencies, or you can use different gain and loss accounts (and corresponding subaccounts) for each currency used by your company.

You use the Currencies form to specify the rounding gain and loss accounts (and subaccounts, if used in your system) for the base currency, and the gain and loss accounts and subaccounts for each of the foreign currencies used by your customers and vendors.

Rounding Rules

To set up rounding for documents, you select the rounding rule and precision in the Data Entry Settings section on the General Settings tab of the Accounts Receivable Preferences (AR101000) and Accounts Payable Preferences (AP101000) forms. The following rounding rules are available:

• Nearest: To round each total amount to the nearest multiple of the smallest unit.
• Up: To round each total amount up to the next multiple of the smallest unit.
• Down: To round each total down to the previous multiple of the smallest unit.
• Use the Currency Precision: To temporarily not use rounding if it is activated in your system. If this option is selected, for each document, the system will round the document total according to the precision specified for the document currency. The precision of the base currency is specified on the Branches (CS201000) form, and the precision of foreign currencies is defined on the Currencies (CM202000) form.

In addition to selecting the rounding rule, on the Accounts Receivable Preferences and Accounts Payable Preferences forms, you select the rounding precision—that is, the smallest unit to be used for document amounts. The following options are available:

• 0.1: To round the totals to multiples of 0.10
• 0.5: To round the totals to multiples of 0.5
• 1.0: To round the totals to integers
• 10.0: To round the totals to multiples of 10
• 100.0: To round the totals to multiples of 100

The following table illustrates the results of rounding with different rules and precisions applied to the sample value of $1734.57.