Round Off
Also called: Rounding Difference
The few paisa difference when invoice totals are rounded to the nearest rupee, on the Profit and Loss statement.
In detail
Round Off absorbs the paisa difference when an invoice total is rounded to the nearest rupee. Nepali invoices are normally shown in whole rupees, so BRAccount, with rounded totals enabled, computes the exact total with VAT and then rounds it; the few paisa gained or lost are posted here automatically so the customer's Debtors balance equals the rounded figure printed on the bill. The account type is Round Off, which is how the system finds it, and the Company's Round Off Account must point here. The balance is tiny and nets toward zero over the year, but an unexpected large amount means someone posted here by hand. VAT is computed on the unrounded value, so the return is unaffected.
Formula
Round Off = Rounded grand total - Exact grand total, positive or negative paisa
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors | Rs 1,130 | |
| Rendering of Services | Rs 999.65 | |
| VAT Payable | Rs 129.95 | |
| Round Off | Rs 0.40 |
How to record it in BRAccount
- 01Go to Accounts Setup > Company and confirm Round Off Account is Round Off and a cost center is set.
- 02Go to Invoicing > Sales Invoice > New and enter items whose total with VAT is not a whole rupee.
- 03Check the Rounded Total field shows the whole-rupee figure.
- 04Submit. The entry below posts with the paisa difference credited or debited to Round Off.
- 05Read the ledger on Financial Reports > General Ledger; it should stay within a few rupees.
When to use it
Posted automatically by Sales and Purchase Invoices when rounding is on. Set it in Company settings as the Round Off account.
Example from the demo books
Dr Debtors Rs 1,130, Cr Rendering of Services Rs 999.65, Cr VAT Payable Rs 129.95, Cr Round Off Rs 0.40 on an invoice totalling Rs 1,129.60.