In General ledger , we have the rounding off option to general , Sales orders , purchase orders and Prices .
Rounding off setup for prices as mentioned below.
Prices :
Rounding Price : 0,0001 Rounding form : Normal
Client uses standard cost for the all materials and defined the one item cost price as 29.45 and activated price.
User posted sales invoice for 80 Pcs , then system should update the financial cost amount as 2356 (80 * 29.45) in the inventory transaction form ,but it updated as 2356.33 and same amount posted to Consumption account (COGS account ) also .
Several transactions posted same way ,I did not understand why it is posting 0.33 extra amount and what would be cause to post that extra amount ,which setup ?
Is it possible that the item price had additional decimals after the .45 that are being calculated into the cost - you just aren’t seeing them? Look into how the cost was calculated and see if there are more than 2 decimal places defined there. This may be what is causing your issue.
Because you have prices set to rounding rule of 0,00001, it is accounting for additional decimals when costing. You can change that to 0,01 but this could change a lot and you would lose some accuracy when calculating costs on items. I would work with the accounting team to ensure this is what they really want. It is calculating the cost out to the additional decimal places because that rounding rule is set so far out.
If I set the price 29.4567 ,I mean more than two decimals then I agree with you. But cost price is setup with two decimals only. Then how it calucates additional decimals when we do not setup.
This is what i am not able to understand.
Sometimes when you calculate off a BOM, one or several of the items will explode out to multiple decimal places - but since rounding is in place, it will round up to the nearest hundredth. The additional places are still there. For example, let’s say a component costed out to 0.3265 on a BOM. This would round up to 0.33 for the costing purpose, but the ACTUAL amount that is tied to this record is 0.3265. We see rounding errors from these all the time and if you want to fix it, you would have to change your rounding methods then recalculate every item that is in your system prior to doing an inventory revalue.
I spoke to my cost accountant about this and she informed me that this happens all the time.
Now, if you manually entered the price on the managed cost field and it wasn’t calculated off the BOM, then you have an issue. I am making the assumption that you calculate off the BOM.