Talk:Rounding
Contents
Layperson reading
- As i read it, there are already present PriceList rounding rules and that Daniel Tamm is suggesting an additional 'Document' or 'Charge' rounding rules.
- That this is backward compatible in that if no additional rules are defined. nothing is disrupted.
- It be good if a GW sample is given when this feature is accepted.
- If so, then +1 of my PMC, weighted and citizen vote to be in trunk :) - Redhuan D. Oon 23:19, 8 July 2010 (UTC)
My Take
Having some experience with rounding rules defined for one of the largest global banks, I can suggest that this topic is much larger than what we are presently considering. Firstly, there is the rounding rules applied as part of the costing / pricing mechanisms, then document rounding and also reporting rounding. Each of these have their issues and need to be considered in conjunction to local tax rules & laws as well as local accounting standards and interpretations of global standards such as IAS/IFRS or US GAAP. --Michael Judd 10:43, 9 July 2010 (UTC
Rounding Functionality Analysis
After a careful review of this functionality, I would like to post a few comments:
Up to this day Adempiere handles rounding of monetary operations using currency precision, this can be defined twofold, by using standard precision and through cost precision as well, this applies throughout all fields having cost+price as reference, however there is no provision to determine rounding based on certain rules, as we can determine precision currently by selecting the total number of decimals only.
Standard precision is used for all monetary operations through the posting of accounting documents and tax calculations, where as cost precision is leveraged when cost based transactions are involved.
Also, let us not forget rounding rules are provided for price lists and price list schema calculations wich affect the outcome of unit prices, so this is restricted to prices and price based calculated amounts.
Although rounding is a pure arithmetical operation, it does have consequences on the accounting and fiscal turnover, as some countries might even legally determine the extent and procedures on how it should be accomplished.
Further Comments and Questions
Proposed Solution downside
I found the scope of the proposed solution currently limited to some documents such as Sales Orders, Purchase Orders, and AP/AR for instance, thus solving this problem only partially, as we would expect a more general approach with project wide reach.
Questions
- How does the proposed solution impact Tax calculations?
- What gross effect does this rounding have on accounting transactions? It seems like the rounding differences are being balanced by adding a charge line to the document detail, so wouldn’t this affect current printing documents?
- And what do the total effect be on calculating product costs?
Some recommendations
- I think a more general approach should be enforced here, for instance why not moving the rounding rule flag currently on the Price List window onto the document type window? This will allow the document type to ultimately drive the rounding rule for any doc type down the line and not just a few ones.
- Rounding business logic should be leveraged on all MClasses implementing DocAction interfase.
- Rounding differences should be applied to natural accounts specially configured for that purpose, e.g. currency balancing, currency balancing acct.
- Rounding business logic should be included from the accounting engine, as with intend currently with costs methodologies for instance.
Member of The Functional Team Victor Pérez 04:15, 25 July 2011
Thanks for the feedback
Yes, it is definitely a significant topic as Mike says. Nevertheless I guess we need to start somewhere because currently it's not really handled at all I think (only for price list generation).
/Daniel
Time to Revisit?
Canada has just stopped producing the penny or 1 cent coin. The transactions planned include rounding on cash transactions only. Credit transactions will still use the cent fraction. See Infographic: How rounding works in cash transactions without the penny. (The Globe and Mail).
MJMcKay 13:52, 4 February 2013 (UTC)
