Because legal tender denominations vary in price, cash payments are rounded to the next currency interval. This practice is referred to as cash rounding.
This may occur if specific money denominations become impracticable or coins are no longer used. Businesses must maintain accurate financial records and generate statements for statutory accounting and tax returns to highlight noteworthy figures and make financial decisions easier to interpret.
Cash rounding is a feature in the Odoo ERP Accounting Module that allows users to round a bill’s cost to the next available currency denomination.
To enable this function, users need to navigate to the ‘Customer Invoices’ tab in the Accounting module’s ‘Settings’ menu and pick the ‘Cash Rounding’ option, as seen in the image below.
After using the feature, you may create or manage cash roundings by clicking the ‘Cash Roundings’ link or selecting the ‘Cash Rounding’ option from the ‘Configuration’ menu. Any of these two steps will open the dashboard for cash rounding entries, as shown below.
Open the new cash rounding configuration form by clicking the 'New' button and modifying the form fields. Enter the name of the new cash rounding procedure into the form view's 'Name' box. The 'Rounding Precision' parameter lets you select the lowest non-zero currency value.
In the ‘Rounding strategy’ section, describe the rounding of the invoice amount to the specified rounding accuracy. You can adjust the tax amount or add a rounding line.
When adding a rounding line, include the ‘Profit account’ and ‘Loss account’ in the proper sections. You have three options for the ‘Rounding Method.’
UP: If the Up method is employed, the result will be rounded to positive infinity based on the rounding method.
Down: When the down method is used, the result is rounded off in the direction of negative infinity based on the rounding accuracy.
HALF-UP: The half-up method is the third option. This method works for fractional numbers. Values having fractional components less than 0.5 will be rounded to the negative, otherwise to the positive.
Save the Cash Rounding steps after configuring the necessary elements. We are now able to test the Odoo 17 Accounting Module's ability to define a currency's lowest coin.
Cash Rounding For an Invoice Billing
To create a new invoice, select the ‘Invoices’ option from the ‘Customers’ menu and enable the cash rounding features.
Within the invoicing window, you will see all of your company’s invoices, together with details such as the number, customer, invoice date, due date, activities, tax excluded, total in currency, and so on.
To open a new invoice configuration form, use the "New" button. When you enter your customer's name into the 'Customer' field, the delivery address is instantly displayed. In the "Invoice Date" box, select the estimated bill and official record date.
In the Invoice Date and Due Date columns, select the transaction's official record date and the anticipated bill date. Add the invoicing products by clicking the "Add a line" button in the "Invoice Lines" tab.
After selecting a cash rounding technique from the "Other Info" tab, enter the appropriate cash rounding in the "Cash Rounding Method" box in the "ACCOUNTING" section.
After you've added the products and the cash Rounding Method, you can see the entire amount of the invoice order in the lower portion of the 'Invoice Lines' field.
The cash 'HALF-UP' rounding method is used to round the 320.98 total value of the product up to 369.15. You may also view how much is added or removed to round up the number using the "Rounding" field, as shown in the screenshot above.
We may also alter the Rounding Method of the Cash Rounding function to 'DOWN' and test the cash rounding of the same invoice amount.
After altering the rounding method, we see the new invoice amount of 369.10, a rounded figure obtained by subtracting $ 0.03 from the real invoice amount, as seen below.
If we set the 'Rounding Method' to 'Up,' we can see that the entire amount gets rounded off by adding $ 0.05.
This feature of the Odoo 17 Accounting module streamlines cash rounding in businesses, allowing for easy control of approaches such as UP, DOWN, and HALF-UP to achieve accurate results.
