How to account for rounding differences

Hi

I have Posted the sales order for around 1300 lines. So when I apply

the Invoice to Cash Receipt Journals the amount shown is more than the

actual amount due to rounding differences for each line.

How rounding differences are acounted for.

What version are you on?
Navision has added functionality for payment tolerance. Basically you apply the invoice and the difference goes to a separate account.

As nAhmed says, this functionality changed from version to version, and country to country, so your system may be different.

In terms of rounding on a sales invoice, its a rather complex process. basically navision looks at the first line of the invoice, and rounds this according to local settings, (typically 0.00) it then subracts this formt he full amount rounded to 5 decimals. It then adds this rounding amount to the next line before repeating the process.

You will notice this most on invoices with lots of lines for small amounts. It means in the end that the total rounding error on the invoice should never be more than one rounding unit (0.01 in this case).

The point is that its most likely that Navision is correct, you just need to understand it.