Rounding gl source but not posted,is this ok?

2009-04-10
2013-03-07
  • Carlos Ruiz
    Carlos Ruiz
    2009-04-10

    Hi, question for accountants.

    I'm wondering if this is a bug - and if it's a bug - what's the right solution:

    Scenario:

    Example: Currency COP (Colombian Peso) with precision = 0  (no cents in my documents)

    I need to make a GL adjust (via GL Journal) for this:

    Account X -> DB - 268436.44
    Account Y ->   CR - 81833.94
    Account Z ->   CR - 186602.50

    Please note I'm adjusting some values inherited from previous system, that's why I'm adjusting with cents even when I don't manage currency with cents in adempiere.

    Now - the problem I see is this, the posting of the GL Journal result in:

    Account X:
    AmtSourceDR = 268436
    AmtAcctDR =  268436.44

    Same for the other accounts - the source is rounded, but the posted is not.

    And Adempiere make at the end a suspense balance adjust.

    I think there must be something wrong:

    Or the source is not rounded in this specific case (gl journal with cents)
    Or the posted values must be rounded.

    What do you think?

    Regards,

    Carlos Ruiz

     
    • Colin Rooney
      Colin Rooney
      2009-04-10

      I'm not an accountant but I see your problem Carlos.

      You say the posting is
      Account X:
      AmtSourceDR = 268436
      AmtAcctDR = 268436.44

      Is that correct?  I could imagine the Source is NOT truncated (268436.44) and the AmtAcct is?

      The if the value for amount was coming from a calculation in the application with the decimal when the currency precision is Zero then I would say that is 100% wrong.

      But if a value is explicitly entered as say 1.50 then it also seems wrong to me to simply truncate it.  I guess the 1.5 value should be considered an invalid number in this scenario?

      In the meantime... you mention this is inherited so I'm wondering are you doing a data migration and if so could you truncate/round BEFORE you load.  Just a thought if you are in a hurry... because I'm not 100% sure what I believe should happen.  I can imagine that if you were allowed entered 1.4 and 1 is posted another person might say it's not good to silently truncate.

      Some thoughts...

      colin

       
      • Carlos Ruiz
        Carlos Ruiz
        2009-04-10

        Thanks a lot Colin.

        > I could imagine the Source is NOT truncated (268436.44)
        > and the AmtAcct is?

        The opposite - source is truncated - the definitive posting value is not.

        > The if the value for amount was coming from a calculation
        > in the application with the decimal when the currency
        > precision is Zero then I would say that is 100% wrong.

        Not coming from a calculation, it was entered directly in GL Journal window.

        > In the meantime... you mention this is inherited so I'm
        > wondering are you doing a data migration

        Nope, not migrating data.

        I found my previous accountant (the one who managed my accounting before I implemented adempiere) posted wrongly to account X - and the right posting must be distributed to accounts Y and Z the way I showed.

        But I suppose this could be a typical scenario when accountants make the adjustments from "old migrated data" to the new adempiere installed.
        [ This could happen also simply when you're managing your currency with precision 2 and in some month you decide to change it to precision 0, in this case any adjustment to the previous postings will result in suspense balance posting ]

        Regards,

        Carlos Ruiz

         
  • Can someone explain how does rounding works, I read some explanation on http://www.adempiere.com/Rounding#Document_Rounding_Rule but I can't see how does it work. If I have line in SO/PO or invoice what would be rounded total of that item or total of document on currency precision? if I have amount of 12,265 how it would round it: on 12,26 or on 12,27? Can some setup about rounding be done beside on currency precision and in the Price list? At first place I am interesting in how does it rounding line and whole document?