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Re: Pennies

On 15/08/09 03:00 , Erik Huelsmann wrote:
> Hi Jigme, Bob,
> In the Netherlands we haven't had cents (0.01 EUR) in cash payments for
> a looong time (although some other EUR countries do). So, I'm
> sympathetic with your question.
> However, it does raise some other questions:
> 1. What happens if you send your invoice to your customers and they pay
> by wire transfer? Does the 0.01 amount get rounded too? In other words,
> is this cash related only?

This *may* depend on how things are setup in different countries.  My 
understanding is that in Canada, it only is for cash transactions.  All 
other transactions, should maintain usual rounding rules, that being to 
the pennies.

So if an invoice comes to $125.36 a person making a payment by any means 
other than cash would pay $125.36, a person paying cash would pay 
$125.40, or $125.35 depending on rounding rules.

My choice would be that you could define rounding rules as:

round up
round down
round closest

Now, if your intervals are "even" (ie. if rounding to nearest $0.10) you 
run into a situation where $0.15 may be interpreted differently.  The 
"normal" rounding rule would be to round that up.  The scientific is 
round to even.  So $0.15 rounds to $0.20, and $0.25, rounds to $0.20. 
All other cases "round closest" is unambiguous.

In this case, you have it unambiguous anyway.

> 2. Does each line itself get rounded? In the NL, only the actual paid
> amount gets rounded (by the cashier): the printed "invoice" states the
> unrounded amount.

I think in Canada rounding is only applied to the final item.  That 
seems to be standard.

I think that for me, I would probably think that invoice would show a 
total which is not rounded, but a cash payment that would be the actual 
payment, and "rounding" payment that would represent the difference.

Only one place I deal with actually has the rounding showing up on the 
receipt.  I haven't seen how the payment ends up showing up on the 
receipts in other places.

I would prefer that if a cash payment is selected, the rounding would 
not have to be entered manually, but when I am doing it myself, I can 
certainly do that.

> 3. To prevent cash deficits or surplusses, I would expect the difference
> between the unrounded amount and the cash-payable amount to be posted
> somewhere. Do you have a GL account to post these differences to?

At this point I do not, but I would be setting it up before I start 
dealing with this issue.

Jigme Datse Yli-Rasku

Datse Multimedia Productions
Tel:    250-362-5701
Mobile: 250-354-7094

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