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Change Decimal places in Production and the implications

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Posted on by DD-03071520-0

Hi Everyone,

I am wondering if anyone has ever changed the number of decimal places from 2 to 3 in the general ledger setup. What are the implications or issues you have encountered after the change? Thanks for your input in advance.

Danny

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Dynamics 365 Business Central

2025-08-07_06-55-...

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Sumit Singh 10,078 on at

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Changing Decimal Places from 2 to 3 in General Ledger Setup – Deep Analysis
Changing the decimal precision in General Ledger Setup from 2 to 3 in Business Central ERP is technically feasible, but it has broad implications across the system. Here's a detailed breakdown:
Implications
1. System-Wide Impact

All financial transactions will now display and calculate with 3 decimal places.

This affects journals, ledgers, reports, and user interfaces.

2. Rounding Differences

You may encounter rounding mismatches in:

VAT and tax calculations

Currency conversions

Financial reports

Intercompany postings

3. Reporting and Presentation

Invoices, statements, and reports may look unusual or cluttered.

You may need to customize layouts to round or format values appropriately.

4. Historical Data

Previously posted entries remain at 2 decimals.

New entries will have 3 decimals, causing inconsistencies in comparisons or audits.

Best Practices Before Changing

Test in a sandbox to assess impact across modules.

Simple Example
Let’s say you post a journal line for a sales transaction:

With 2 decimals:
Amount = ₹1,000.25
Tax (18%) = ₹180.05
Total = ₹1,180.30

With 3 decimals:
Amount = ₹1,000.254
Tax (18%) = ₹180.046
Total = ₹1,180.300

Now imagine this is part of a batch of 1,000 transactions. The cumulative rounding difference could be ₹50–₹100, which may affect reconciliation, reporting, or tax filings.
Note: This response was created in collaboration with Microsoft Copilot to ensure clarity and completeness. I hope it helps to some extent.
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Claude Rustom 13 on at

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Changing the Decimal from 2 to 3 will not anything in the calculation of the posted invoice or Ledger, it will change the visual to have 3 Decimal Places, means 2.22 will be 2.220

The Rounding Difference will not be changed for the Historical data, it will affect new Transactions.

Better to change it in a sandbox not directly on the production

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YUN ZHU 95,329 Super User 2025 Season 2 on at

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Hi, hope the following can give you some hints.

https://community.dynamics.com/forums/thread/details/?threadid=2ca45f4d-6087-45f0-bc63-99896ad912b9

https://www.dynamicsuser.net/t/unable-to-change-amount-rounding-precision-in-general-ledger-setup/52051

Thanks.

ZHU

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Dynamics_Decoded_Gokul 451 on at

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Hi

In General you can make this from 2 to 3. however once you moved you can return back to 2 since this will have significant impact on your historical data.

best method is change the setup ask all the users to review the transaction and check if you have any power BI connected and check if you have account schedule and financial reports to ensure the accuracy and try the same in production later.

Thanks
Gokulnath

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Suresh Kulla 50,243 Super User 2025 Season 2 on at

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You can change it, I never heard any issues after the change, but it is better for you to update this in one of our sandboxes and do some regression testing.

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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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Changing decimal places from 2 to 3 in General Ledger Setup is possible, but it impacts all postings, item costs, and rounding throughout the system. You may see differences in valuations, reports, and reconciliations. Best to test in a sandbox first and consult your partner before applying in production.

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