Difference between revisions of "Rounding"
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== '''Overview''' == | == '''Overview''' == | ||
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3002 x $0.05 = $150.10 | 3002 x $0.05 = $150.10 | ||
| − | 291 x $0.05 = $14.55 | + | 291 x $0.05 = $14.55 |
| − | '''Total = $164.65''' | + | '''Total = $164.65''' |
| − | + | <br> 3, Using the line point total rounding method where the line total is rounded you get | |
| − | 3, Using the line point total rounding method where the line total is rounded you get | + | |
3002 x $0.05454 = $163.72 | 3002 x $0.05454 = $163.72 | ||
| − | 291 x $0.05454 = $15.87 | + | 291 x $0.05454 = $15.87 |
'''Total = $179.59''' | '''Total = $179.59''' | ||
| − | + | <br> | |
4, Using the total point rounding method where all the lines are combined before rounding you get | 4, Using the total point rounding method where all the lines are combined before rounding you get | ||
| − | 3002 x $0.05454 = $163.72908 | + | 3002 x $0.05454 = $163.72908 |
291 x $0.05454 = $15.87114 | 291 x $0.05454 = $15.87114 | ||
| Line 64: | Line 63: | ||
'''Total = $179.60''' | '''Total = $179.60''' | ||
| − | + | <br> Add to this that the tax component can also be rounded at each of the points, the levels of complexity grow with each point. | |
| − | Add to this that the tax component can also be rounded at each of the points, the levels of complexity grow with each point. | + | |
ERP uses the Total point method so that the most accurate costing and pricing values are used at any level. This method is accepted around the world, by all tax agencies as the end result or the total of the transaction, including the tax calculation is rounded to 2 decimal places. | ERP uses the Total point method so that the most accurate costing and pricing values are used at any level. This method is accepted around the world, by all tax agencies as the end result or the total of the transaction, including the tax calculation is rounded to 2 decimal places. | ||
Latest revision as of 10:59, 9 May 2011
Overview
Rounding is a transactional based concept that can be done in a number of ways. This can effect not only quantities of product but also unit values, tax and total values.
Currency rounding can be done at a quantity point, at a line point, at a line point total or at a total point.
Tax can also be rounded at different points and that is at unit price before calculation, at unit price calculation or at total line calculation.
The most accurate method is to use the Total point.
For example.
You buy bolts at $54.54 ex tax per 1000 or $0.05454 ex each bolt. You want to buy 3002 bolts for one job and 291 for another job
1, Using the quantity method for rounding your transaction you would alter the quatity to 3000 and 290 Out come will be 3 units short.
2, Using the line point rounding method you alter the price from $0.05454 to $0.05 so
3002 x $0.05 = $150.10
291 x $0.05 = $14.55
Total = $164.65
3, Using the line point total rounding method where the line total is rounded you get
3002 x $0.05454 = $163.72
291 x $0.05454 = $15.87
Total = $179.59
4, Using the total point rounding method where all the lines are combined before rounding you get
3002 x $0.05454 = $163.72908
291 x $0.05454 = $15.87114
Total = $179.60
Add to this that the tax component can also be rounded at each of the points, the levels of complexity grow with each point.
ERP uses the Total point method so that the most accurate costing and pricing values are used at any level. This method is accepted around the world, by all tax agencies as the end result or the total of the transaction, including the tax calculation is rounded to 2 decimal places.
