DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Rounding issues when using multi-currency


#1

When purchasing items from countries with large conversion factors (i.e. Yen, Rupees, etc) rounding errors become more significant.

How can I deal with these rounding errors due to lack of significant figures?

EDIT: Working out an “exchange rate” based on the number of significant figures available to me seems to work.


#2

Can you explain what you mean using some example transaction?


#3

For example,

When paying internationally I select the international currency via the bank, say paying 100,000 Yen. Then the bank says the exchange rate is 96.28 Yen per dollar, and on the statement says $1038.64.

However, putting these numbers into manager will obviously not balance the the invoice as 96.28*$1038.64 = 100,000.26 Yen.

What I’ve been doing to alleviate this is simply divide the two currencies to work out a new conversion factor with more significant figures to make the two fit i.e. 100,000/1038.64 = 96.279750, which gives me enough precision for it to round to the correct amount.

Is this the correct method of dealing with these issues?
Or do I add another item called ‘forex rounding’ or something?


#4

If you make transaction where you pay invoices from bank account that is denominated in different currency than the invoice itself, there will be this issue. So the correct solution will always be to supply exchange rate that will make it correct.

The only problem is that Manager currently doesn’t let you override exchange rates used on transaction level. I’m almost there and it will be soon possible.