About currency rounding rules

If multi-currency support is activated the Enable/disable functionalities (CS100000) window, rounding rules are applied during currency conversion operations. Visma.net ERP uses the following basic rules for rounding:

  • The exchange rates should be specified with six significant figures. The exchange rates themselves are not rounded or truncated.
  • The exchange rates are used for conversions between the base currency and any foreign currency.
  • All currencies are used with the precision of their subunits, and the amounts resulting from currency conversion operations should be rounded up to the nearest currency subunit if the digit in the next decimal place is 5 or greater.

Consider the following example: The Euro currency has two places after the decimal point that denote the number of cents.

Suppose that the result of conversion of the U.S. dollar to the Euro is an amount with more than two decimal places.

The rules are applied as follows:

  • If the digit in the third decimal place is less than 5, the amount in the second decimal place stays as it is. (For instance: 57.354 EUR becomes 57.35 EUR.)
  • If the digit in the third decimal place is 5 or above, the amount in the second decimal place must be rounded up. (For example: 57.785 EUR becomes 57.79 EUR.)

Any differences between the exact and the rounded amounts are accumulated on the Rounding gain account and Rounding loss account, which you specify for the currency in the Currencies (CM202000) window.

The rounding differences for the base currency may occur, if on converting journal entries made in a foreign currency the debit amounts differ from the credit amounts of the batch.
You can specify the accounts for posting gains and losses from rounding transaction in the base currency in the General ledger preferences (GL102000) window.

Parent topic:
Configure currencies - overview

Related reference
Currency management preferences (CM101000)