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Depending on how rounding is configured, rounding discrepancies can arise. For example, the sum of invoice item totals may not add up exactly to the invoice total as shown on an invoiceconsider a scenario where two invoice line items on an invoice have a value of $10.0045 each, which totals to $20.009. However, if the invoice document format is configured to show invoice items to two decimal places, then the invoice will display $10.00 for each invoice item but the invoice total will be $20.01 (i.e. $20.009 rounded to two decimal places) resulting in a $0.01 discrepancy.
Additionally, when it comes to invoices, FastTrack360 will add grouped items together, and then apply the rounding to the sum of those items.
The following is a guide that explains how rounding is applied in FastTrack360, the various places in the system where rounding can be applied and what that rounding affects. Recommendations are also given as to how rounding should be configured at each point in the system to achieve the best results and to reduce rounding discrepancies.
Rounding Types and Values
Wherever rounding can be configured in FastTrack360, the following settings must be defined:
Rounding Type
This identifies if values are to be rounded or truncated to a certain number of decimal places.
For example, 7.3467 rounded to two decimal places is 7.35 while the same value truncated to two decimal values is 7.34.
Rounding Value
This identifies the number of decimal places to which values are to be rounded or truncated. This can be a value from 0 to 6 decimal places.
Rates and Rules Maintenance
When creating pay agreements and bill agreements in the Rates and Rules module> Pay Agreements and Rates and Rules > Bill Agreements, you have the ability to set rounding on Pay Rate Rules and Bill Rate Rules, whereby the rounding on each rule can be different. That rounding is applied to the total of the Pay Rate Rule or Bill Rate Rule, as calculated by the Interpreter.
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The rounding that applies to the calculated result of pay and bill calculations for standard rates job orders is determined by rounding settings that are configured in Maintenance > Hierarchy > Country > Middle/Back Office Country Settings > Pay Batch and Standard Rate Rounding. Those rounding settings also apply to the following:
For more information about the pay batch and standard rate rounding settings, see Middle and Back Office Country Settings - Rounding Settings. |
Billing Maintenance
When creating a Billing Company, you must define the rounding settings that apply to that particular billing company. There are Billing company rounding settings, which are defined under Billing > Maintenance > Billing Company > Billing Company Entry > Rounding, define how six different billing item types for which a are to be rounded whereby each item type can have a different rounding type and rounding value must be defined, as described in the table below.
The table below lists and describes the billing item types.
Item Type | Description |
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Invoice Item Sub Total (Excluding Tax) | This is the total of the rate x quantity for an item |
Invoice Item Tax Total | The is the total of the tax only for that item |
Invoice Item Total (Including Tax) | This is the total of the two previous fields; rate x quantity + tax |
Invoice Sub Total (Excluding Tax) | This is the total of all invoice items excluding tax |
Invoice Sub Total (Including Tax) | This is the total invoice value; all items and tax |
Invoice Tax Total | This is the total tax for the invoice |
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Further the rounding set at the billing company does not define what is displayed on the invoice but it does define the actual or stored values. The rounded figures you see displayed on an invoice are defined in document formats (see below) and are for display purposes only.
Document Formats
When creating an invoice or payslip formats in Maintenance > Document Designer > Document Formats there are several fields that allow for rounding. This rounding is for display purposes only.
Invoices
You are able to set rounding on your invoices to make them easier to read. The main fields where you will need to think about rounding are ;the following at the invoice item level:
Quantity
Rate
Tax
Total exc Tax
Total inc Tax
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to round to 2 decimal places enter 0.00
to round to 4 decimal places enter 0.0000
to round to 6 decimal places enter 0.000000
For example, in Figure 3 below the Rate field is configured to show four decimal places.
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That would result in the rate amount being displayed to four decimal places on an invoice, as shown in Figure 4 below.
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If you leave this the Number Format field blank the system will default to 2 decimal places.
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It is important to remember that these fields are for display purposes only and the stored values in the system will be driven by the rounding on the billing company.
Invoice Rounding Lines
Invoice formats can be configured to display a rounding line, which can be used to show the rounding difference between the sum of tax (VAT/GST) item totals at the invoice item level and the corresponding invoice item totals. That can be used to help debtors reconcile invoice item totals to the overall invoice totals. An example of this is shown in Figure 5 below.
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The rounding line can be enabled within an invoice document format by selecting the Invoice Items layout component by selecting the Display Rounding Line option under Rounding Settings in the component properties, as shown in Figure 6 below.
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A rounding line can only be displayed on an invoice if the Tax (GTS/VAT) and Total fields are included in the Invoice Items component. |
Pay Slips
You are able to set rounding on your pay slip to make them easier to read. The main fields where you will need to think about rounding are;
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These setting will change the look of your payslip however are for display purposes only. The actual or stored figures are driven by your settings on Pay Agreement Pay Rate Rule for pay items and from country settings for other entitlements.
Recommendations
To achieve the least amount of rounding in the system and reduce the chance of any apparent error the following settings are recommended.
System Configuration Area | Rounding |
Pay / Bill Agreements: Pay Rate Rules Bill Rate Rules |
6 decimal places 6 decimal places
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Billing Company: Invoice Item Sub Total (Excluding Tax) Invoice Item Tax Total Invoice Item Total (Including Tax) Invoice Sub Total (Excluding Tax) Invoice Sub Total (Including Tax) Invoice Tax Total |
6 decimal places 6 decimal places 6 decimal places 2 decimal places 2 decimal places 2 decimal places
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Document Formats: |
Rates and Sub-totals |
4 decimal places | |
Middle/Back Office Country Settings: Rounding |
6 decimal places (rounding here should always match what you have set on Pay and Bill Rate Rules) |