If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)

Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Accounting for rounding errors

squibs · 2008-05-21 15:05:34

I'm writing an invoicing system at the mo. If I quote somebody for €1075.50 and invoice them in 3 stages for 17%, 50% and 33% of the total, these values work out at 182.83500000 537.75000000 and 354.91500000 On an invoice, I believe nobody issues invoices for a fraction of a penny, so these would be rounded to the penny,…

21-05-2008 4:05pm

#1

squibs

Closed Accounts Posts: 975 ✭✭✭

Join Date: May 2005

Posts: 856

I'm writing an invoicing system at the mo.

If I quote somebody for €1075.50 and invoice them in 3 stages for 17%, 50% and 33% of the total, these values work out at
182.83500000
537.75000000 and
354.91500000

On an invoice, I believe nobody issues invoices for a fraction of a penny, so these would be rounded to the penny, giving
182.83
537.75 and
354.91
if I round down giving a total invoiced of 1075.49, and

182.84
537.75 and
354.92
if I round up giving a total invoiced of 1075.51

Both these values differ from the quote value
How can I reconcile the error?

0

Comments

#2 21-05-2008 4:11pm

Tails142

Registered Users, Registered Users 2 Posts: 2,117 ✭✭✭

Join Date: June 2006

Posts: 2052

Total payment

First stage = 17% of total

Second stage = 50% of total

Third stage = total payment - (first stage + second stage)

0
#3 21-05-2008 4:47pm

squibs

Closed Accounts Posts: 975 ✭✭✭

Join Date: May 2005

Posts: 856

Thanks for that - it's not an elegant solution to program though. Would that be the convention in normal accounting practice?

0