Account type: Round Off

Account type Round Off marks the ledger that absorbs the paisa difference when an invoice grand total is rounded to the nearest rupee. The Company record names it, and every Sales or Purchase Invoice with rounding on posts the difference here automatically. The demo account is Round Off - YFF under Other Operating Expenses; its balance is a few rupees of gains and losses that net to almost nothing over a year. If no Round Off account is set, invoices with rounding fail to submit. If someone posts real expenses here the account stops being a sanity check, so keep it for rounding only.

Round off amount = Rounded total - Grand total; Rs 36,160 - Rs 36,160.40 = Rs -0.40

1. 01Go to Accounts Setup > Chart of Accounts and open Round Off - YFF; confirm Account Type is Round Off.
2. 02Go to Accounts Setup > Company and set Round Off Account and Round Off Cost Center.
3. 03On an invoice, leave Disable Rounded Total unticked so the grand total rounds.
4. 04Submit. The paisa difference posts here as in the entry below.
5. 05Click View Ledger at year end; the balance should be tiny.

Set on Round Off - YFF and name it in the Company settings.

An invoice of Rs 36,160.40 rounds to Rs 36,160, with 40 paisa posted here.