My Xero invoices have rounding correction - why does this happen?

I've noticed that there are a few cents added to the bottom of invoices for rounding correction, how does Cin7 calculate this.

Answer

Xero calculates tax for each line item using 2 decimal places, while Cin7 calculates tax for the total invoice amount using multiple decimal places. This may occasionally result in minor discrepancies due to rounding.

Cin7 adds in a rounding correction to ensure that the total amounts match each other despite rounding differences.

The way rounding is calculated is as follows:

If (rounded qty) * (rounded price) – (not rounded qty) * (not rounded price) is >= 2 cents then the actual quantity and price is put in the description, and we will add quantity as 1 and the price as the rounded price.

If the difference is less than 2 cents, then an additional rounding line item is added to the Xero invoice.

8/22/2017 - Daniel