About rounding of document amounts

In Visma.net ERP, rounding is determined by parameters that define the rounding rule, rounding precision, and rounding limit. You use the following windows to specify these settings:

• Customer ledger preferences (AR101000): You use this window to specify the rounding rule and the precision that apply to the customer ledger documents of the following types: Invoice, Credit note, Debit note, Overdue charge, and Cash sale.
• Suppliers (AP303000): You use this window to specify the rounding rule and the precision that apply to the supplier ledger documents of the following types: Invoice, Credit adjustment, Purchase debit note, and Prepayment.
• General ledger preferences (GL102000): You use this window to specify the system-wide rounding limit (the maximum rounding difference, which is the difference between the rounded and 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 rounding difference recalculated 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) to be used 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 General ledger preferences (GL102000) window to specify the rounding gain and loss accounts (and subaccounts, if enabled in your system) for the base currency, and you use the Currencies (CM202000) window to specify the gain and loss accounts and subaccounts for each of the foreign currencies used by your customers and suppliers.

To set up rounding for documents, you select the rounding rule and precision. 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 in the Branches (CS102000) window, and the precision of foreign currencies is defined in the Currencies (CM202000) window.

In addition to selecting the rounding rule, you select the rounding precision or 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 table below illustrates the results of rounding with different rules and precisions applied to the sample value of €1734.57.