Currencies - Round Off Card
This page describes the fields on the 'Span' card of the Currency record. Please follow the links below for descriptions of the other cards:
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- Automatic Round Off Limit, Automatic Write Off Limit
- When you enter a Receipt or Payment, the Invoice being paid can be treated as fully paid if the amount received or sent is slightly different to the amount that is outstanding, providing that the difference is within an allowable margin. Use these fields to specify that margin for a particular Currency.
- For example, if the Round Off Limit is 0.50 and you receive a payment that underpays an Invoice by 0.35, the 0.35 will be written off (posted to a write-off Account) and the Invoice will be treated as fully paid. But, if the payment underpays the Invoice by 0.65, that amount will remain outstanding.
- The Write Off Limit will be used when the Received Currency in the Receipt or the Sent Currency in the Payment is the same as the Currency in the Invoice being paid.
- The Round Off Limit will be used when the Received or Sent Currency is different to the Currency in the Invoice being paid. A Round Off will be posted when the remaining outstanding amount on the Invoice when expressed in the Invoice Currency is less than the Round Off Limit.
- You should enter Limits in these fields that are expressed in the Currency of the Currency record. For example, if the Currency record is the US Dollar, enter Limits expressed in Dollars and Cents.
- Depending on whether the Currency is a Member of the EMU (set on the 'EMU' card), any Round Off will be posted to the Rate Round Off or EMU Rate Round Off Accounts, while any Write Off will be posted to the Write Offs Gain or Loss Accounts or to the EMU Rate Write Offs Account, all as defined on the 'Exchange Rate' card of the Account Usage S/L and the 'Rate' card of the Account Usage P/L setting.
- Note that the same Write Off and Round Off Limits in a Currency record will be used in both the Sales and Purchase Ledgers. By entering Limits in a Currency record, you will therefore be implementing the write-off feature in both Ledgers for that Currency.
- You can of course enter Write Off and Round Off Limits for your home Currency if you need to use this feature in domestic transactions.
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Currencies and Exchange Rates in Standard ERP:
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