Issue in invoice amount displayed due to rounding off in pricing procedure

[Former Member]

Dear team,

We have encountered an issue regarding the price calculation & display on output. The concerned business unit uses a multistep pricing procedure where the net price is defined on the basis of many prior percentage based conditions. Only a few conditions are quantity based (records maintained as per PC) after that almost all conditions are being calculated on % basis in steps.

Now with such scenario, the system rounds off the value to two decimal points. Also as the % conditions are calculated on total amount ( in earlier step) and then calculate the per pc value with rounding off.

An example of the existing calculation is as below:

An order of 1100 PC.

Condition Z1= 52 USD /PC for 1100 PC= 57200

Condition 2 @ 5 % of condition Z1 amount = 57200 * .05 / (1+ .05) = 2723.809 = 2373.81(-)

(One formula is being used as C /1+C)

Cond 3 = 57200-2723.81= 54476.19

Cond 4 = 65 % of 57200= 37466

NOW for calculating per PC value total amount is divided by 1100 PC i.e. 54476.19/1100= 49.523809090909090909090909090909= 49.52

Cond 5 = 54476.19 (49.52/PC)

Cond 6 = 20 % of 54476.19= 10895.238= 10895.24(-)

Sub condition = 54476.19-10895.24= 43580.95

Now per PC value is derived as 43580.95/1100= 39.619=39.62

Cond 7 = 10 % of 43580.95= 4358.095= 4358.10

Cond 8 = 43580.95-4358.10= 39222.85

Now per PC value is calculated as 39222.85/1100= 35.65713= 35.657136363636363636363636363636= 35.66

This condition 7 is used as the net price and displayed on invoice output.

Now one output amount is displayed as

PC Amount (indicate to per PC) Total Amount

1100 35.66 39222.85

Normal business user, doing the output calculation as 35.66 * 1100= 39226 and thus objecting on same.

On invoice output, values are directly fetched from tableu2019s amount for cond 8 and same is transferred to accounting.

Now, changing the output calculation will lead to difference in accounting posting so kindly suggest as what could be the best possible solution to realize this in output / pricing . (I am not very sure as how to tweak the pricing procedure for this without affecting other business units since it is used regionally).

Kindly provide your valuable inputs and let me know if any information is missed/unclear.

Many thanks in advance.

[Former Member · Accepted solution]

Hello Dharmendra,

As per your example, you seem to be using the rounding function in different ways in different conditions.

For example, until condition 4 , the value is not rounded up. But subsequently on any further calculation, there seems to be a rounding up on all values.

Is the customer viewing the value as "1100 35.66 39222.85" on any form output? If that is the case, you could maybe try putting in some coding to display the value per pc upto 5 decimals only on the form output.

Hope this helps.

Cheers,

MR

[Former Member]

Dear MR,

Sorry, by mistake i have written 65 % , in actual it was 65.5 % so 57200*65.5 %= 37466 , With respect to "Is the customer viewing the value as "1100 35.66 39222.85" on any form output? If that is the case, you could maybe try putting in some coding to display the value per pc upto 5 decimals only on the form output. "

Customer is viewing the value exactly as 1100 35.66 ( i.e. per pc value up to two decimal) 39222.85 ( directly fetched from table), so if i maintain the value of per PC up to five decimal i.e. 35.65713, net value would come up as 39222.843 and for 6 decimal it can arrive at printed value,

I will check the same with business as the 6 decimal on print may not be acceptable/feasible from end user perspective.

Thanks for your inputs.

In case, some other approach, pls let me know.

[Former Member]

Hello Dharmendra,

The 5 digit or 6 digit decimals may not be aesthetic to view on the form. However, if the customer is confused with the values appearing , best solution would be to help the customer understand the rounding which is happening on these values.

This way, it will be closed with user training.

Else, you will need to display the 5 digit decimal for the price per piece and round up the total price .

Hope this helps.

Cheers,

MR