Rounding occurs, for instance, when a GST value is more than 2 decimal places, and the Transaction Journal only balances to 2 decimal places.
For example, a job shows an actual total of $136.2405. Jim2 takes the largest value, posting to an income account and adjusts by the difference to make the journal balance. This can then produce discrepancies between the income account and the transaction journal.
To overcome these discrepancies, you can use the rounding account for invoice journals. Jim2 will place all these small adjustments directly into the rounding account, ensuring that your income accounts and transaction journals now match.
Job Details
Line |
Total Ex GST |
GST |
Line 1 |
88.00 |
8.00 |
Line 2 |
1.05 |
.0955 |
Totals |
89.05 |
8.0955 |
Invoice details
GST |
8.10 |
Total Invoice |
89.05 |
Invoice Income |
80.95 |
Journal Details
Income Line 1 |
80.00 |
|
Income Line 2 |
0.9545 |
|
Total |
80.9545 |
Cannot use this value as the journal will not balance. |
Rounding Account for Invoice Journals
When not enabled, Income Line 1 is adjusted to 79.9955
When enabled, rounding account amount is 0.0045.
Further information:
|
Record Debtors/Creditors Contras Suggested End of Month Procedures Understanding Debits and Credits Use Debtors and Creditors Adjustments Use Jim2 When You haven't Closed Appropriate Financial Years |