Taking care of the pennies. Rounding errors!
John Whitmore
arigead at gmail.com
Sat Oct 31 16:47:03 EDT 2015
While I'm here I'm afraid I have to ask another question.
Should I worry about rounding errors? I'll explain my specific situation.
I bought items for a total of 201.51 Euros
That total included UK Vat at a rate of 20%
I create an invoice for the vendor:
Unit price 201.51 euros
Taxable
Tax Included
Tax Table Vat @ 20%
That creates a calculated sub total of 167.93 Euros
When I post this invoice, due to rounding errors, GnuCash thinks I now owe
amazon 201.52, even though I told it the unit price including tax was 201.51
My problem is that there's a currency conversion here. My actual pre-tax bill
would have been 167.925 but if I put this in as the unit price, excluding tax
at 20% rounding will cause the bill to again be 201.52
if I aim lower and say 167.92 then the bill will be 201.50
I can get a total including tax of 201.50 or 201.52 but not the actual amount
201.51
Is this even an issue? Well I don't know but either Gnucash will always think
I owe amazon a single cent or the bank will be a cent out. Which is better?
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