reproducible, & possibly configurable rounding

[Tim Schofield]

There seems to be some confusion as to what the rounding issue is in
accountancy, so let me give the accountants position on this. The
problem is not the accumulating extra pennies problem in banking
systems that some people in this thread refer to.

A large number of GL transactions are calculated by the system (think
multi currency, stock values, depreciation etc.) Imagine a situation
where you have a calculated debit amount of 12345.6UGX and that is to
be credited across two accounts in the ration 2:1. You then calculate
the following:

Dr 12345.6UGX
Cr         8230.4UGX
Cr         4115.2UGX

Uganda shillings are normally accounted for to zero decimal places so
rounding the above figures gives

Dr 12346UGX
Cr         8230UGX
Cr         4115UGX

giving an out of balance transaction by 1UGX and this is the problem
that needs resolving. As previously mentioned accountants don't see
that shilling as "material", however if it affects a control account
such as banks, stock, debtors/creditors then it becomes important. The
real concern is that there is a policy for the above situation and
that it is kept to.

Thanks
Tim