How to Set Cash Rounding in Odoo 12
Cash rounding is when the total amount of a bill is rounded up or down to the nearest 5 cents. It is only applied to cash payments and not to electronic methods of payments. It also applies to the total amount of a purchase, not on each individual price of an item. The aim of rounding is to reduce the use of 1 and 2 cent coins as often they’re not actively used by consumers and they are costly to mint. The rounding info is displayed during transactions, on receipts, and in reporting.
Cash Rounding in Odoo V12, it is used for total amounts ending in 1 and 2, the amount should be rounded down to zero; those ending in 3 and 4 should be rounded up to 5; those ending in 6 and 7 should be rounded down to 5; those ending in 8 and 9 should be rounded up to 10.
Firstly, you have to install the Accounting module in your database and enable the rounding function.
Go to Accounting module -> Configuration -> Settings -> Invoices -> check Cash Rounding and click on Save button.
Now you can see a menu named >Cash Rounding. You can select from here or you can go to >Invoicing module >Configuration >management >Cash Roundings
Now, you can create a new cash rounding method by clicking the “Create” button.
Now you can enter the following fields like Name, Rounding Precision, Rounding strategy, Account, Rounding method.
~Name: Enter the name of rounding.
~Rounding Precision: Rounding and precision are important aspects of any numerical or financial system. Rounding a numeric value is the act of replacing one numeric value with one that is approximately equal but has a shorter, simpler, or more explicit representation. The precision of a numeric value describes the number of digits that are used to express that value, including digits to both the left and the right of any decimal point. The rounding precision will affect the rounding of the computed value.
~Rounding Strategy: At that time you can create cash roundings. You can do cash rounding by using two strategies.
1. Add a rounding line: This type of Rounding strategy method is to define the Odoo will add a new line in the customer’s invoice
2. Modify tax amount: This type of Rounding strategy method is to define add the rounding to the highest amount of tax.
Account: It defines an account, where the rounding will go.
Rounding Method: There are three types of rounding methods define in Odoo.
1. UP: Value round up based on the rounding precision.
2. DOWN: Value round down based on the rounding precision.
3. HALF-UP: Whereas the fraction part of a value is greater than or equal to 0.5, at that time the round half towards plus infinity otherwise round half towards minus infinity.
Now Let’s see how to apply different Rounding methods in customer invoices:
1. Add a rounding line:
Now you can choose a cash rounding method “UP” and click on Save button
You can create an invoice from the Accounting module. Go to Accounting -> Customer-> Invoices and click on create button. At that time, you can apply the previously created rounding “UP” method.
When you select the UP rounding method, at that time the total amount of 10.07 will be changed to 10.10 that is the total amount will be rounded up.
Now you can choose a Rounding Method “DOWN” to create a new Cash Rounding.
When you select the DOWN rounding method, at that time the total amount of 10.07 will be changed to 10.05 that is the total amount will be rounded down.
Now you can choose a cash rounding method “Half UP” and click on Save button
When you select the HALF UP rounding method, at that time the total amount of 10.07 will be changed to 10.05 that is the total amount will be rounded down.
2. Modify the tax amount
Now you can choose a rounding method “UP” and Rounding Strategy is “Modify tax account” to create a new cash rounding.
When you select the UP rounding method, at that time the total tax amount will be changed to 1.53 that is the tax amount will be rounded up to the amount of the highest tax.
Now you can choose a rounding method “DOWN” and Rounding Strategy is “Modify tax account” to create a new cash rounding.
When you select the DOWN rounding method, at that time the total tax amount will be changed to 1.48 that is the tax amount will be rounded up to the amount of the highest tax.
Now you can choose a rounding method “HALF UP” and Rounding Strategy is “Modify tax account” to create a new cash rounding.
When you select the HALF UP rounding method, at that time the total tax amount will be changed to 1.53 that is the tax amount will be rounded up to the amount of the highest tax.
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