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Rounding methods for taxes

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Posted on by 10

Hi everyone can somebody pleases give me the break down on the various rounding methods in the Tax Detail Maintenance window?  I can't seem to find it anywhere.

Primarily I'm looking for what the difference would be between rounding $23.7406 using these two methods.

Up to the Next Currency Decimal Digit

To the Nearest Currency Decimal Digit

Thanks in advance!

  • Dave Hoyt Profile Picture
    Dave Hoyt 10 on at
    RE: Rounding methods for taxes

    Thanks Isaac!

  • Verified answer
    Isaac Olson Profile Picture
    Isaac Olson on at
    RE: Rounding methods for taxes

    Hello,

    Assuming that your Currency Decimal Digit is 2, here is how I would expect your amount of $23.7406 to round.

    Up to the Next Currency Decimal Digit = $23.75  (Essentially always round up)

    To the Nearest Currency Decimal Digit = $23.74 (Round up or down, whichever is closer)

    Now if your Currency Decimal Digit is 3, here is how I would expect your amount of $23.7406 to round.

    Up to the Next Currency Decimal Digit = $23.741 (Essentially always round up)

    To the Nearest Currency Decimal Digit = $23.741 (Round up or down, whichever is closer)

    If you open the Tax Detail window (Administration >> Setup >> Company >> Tax Details) and go to Help>About this Window, under the Fields tab is has the following explanations.

    Round:

    Determine how tax calculations will be rounded. Choose from the following options:

    Up to the Next Currency Decimal Digit

    Select to round numbers to the next currency decimal digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.57.

    To the Nearest Currency Decimal Digit

    Select to round numbers to the nearest currency decimal digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.56.

    Down to the Previous Currency Decimal Digit

    Select to round numbers down to the previous whole digit. For example, if the tax amount is calculated to be $1.3306, the tax will be $1.33.

    Up to the Next Whole Digit

    Select to round numbers up to the next whole digit. For example, if the tax amount is calculated to be $1.263, the tax will be $2.00.

    To the Nearest Whole Digit

    Select to round numbers to the next whole digit. For example, if the tax amount is calculated to be $1.26, the tax will be $1.00. If the tax amount is calculated to be $1.51, the tax will be $2.00.

    Down to the Previous Whole Digit

    Select to round numbers down to the previous whole digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.00.

    I hope this helps! 

    Isaac Olson

    Microsoft Support

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