Can any one tell me how Debit Rounding Account Field and Credit Rounding Account Field in vendor posting group work

Dear All,

I have been trying to understand how Debit Rounding Account Field and Credit Rounding Account Field in vendor posting group work. Please can anyone give me a good explanation on how it work. I know it has to do with when applying different unit of currency against each other but how it work by post rounding differences from remaining amount. I have been trying to see how the system pick the rounding differences but just can get it yet.

Thanks in Advance

Gbenga

Hi,

Rounding differences occur when there’s multiple lines of transactions.

Following below scenario:

  1. You purchasing 6 different items with individual cost

  2. Your country accounting standards is 2 decimal places

  3. Assuming Home Currency (Local) is SGD

  4. The Exchange Rate you using is: 1 USD = 1.22589 SGD

  5. For each of the items to be posted to your Inventory Control A/C is calculated per item.

  6. The figure going to your Vendor Control A/C and sub ledger will be total * exchange rate

  7. From below, you will find there’s a “0.01” difference.

Hope it helps.:slight_smile:

Rate: 1.22589
USD SGD
Item 01 1.05 1.29
Item 02 5.26 6.45
Item 03 3.28 4.02
Item 04 15.25 18.69
Item 05 16.87 20.68
Item 06 11.26 13.8
52.97 64.93
Vendor 52.97 64.94