How does Sumac handle Penny Rounding Accounts?
Some countries have eliminated very small denominations coins. For example, Canada used to have one-cent coins (pennies), but now its smallest denomination coin is five cents. As a result, cash transactions are rounded up or down to the nearest five cents. In practice, the amounts are trivial, but they do cause ledger entries to be out of balance if not accounted for. You can tell Sumac to solve this problem as follows:
- Create a debit account for penny-rounding amounts. To do this, go to Utilities/Customize Database/Field Values. Choose the Area: Payments, then choose the Field Values: Accounts. Click "New" and define your Penny Rounding account.
- In the preferences window shown below:
- Choose the penny-rounding account from the drop-down list of accounts.
- Specify the amount that below which penny rounding applies. This will typically be the value of the smallest coin in circulation.
- Choose the penny-rounding account from the drop-down list of accounts.
- Make sure that for each Payment Type that uses penny rounding (usually just cash payments, since credit cards can use exact amounts), make sure the checkbox "Round amounts in accordance with Preferences is set." This also is done with the Field Values command: choose Utilities/Customize Database/Field Values. Choose the Area: Payments, then choose the Field Values: Payment Types. Double-click the "Cash" Payment Type to adjust this setting.
Sumac uses one account for penny rounding and adds or subtracts to it depending on whether or not the case transaction is rounded up or down to the nearest five cents.
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