Rounding issues with Accountancy Packages
If you reading this document, you are wondering why your CreataCRM numbers are different to your accountancy package. We too have been frustrated trying to work out what is happening. This document has been our studies to help you understand how each package does its calculations. This will help you get a better understanding on what your accountancy system is doing. And make a better decision to this knowledge. Our suggested solution is to keep rounded numbers in price each and discount. This may not work with you, but once implementing less rounded numbers and start doing discounts, you will start seeing strange things.
Here is our findings with Xero, MYOB and Reckon (Desktop/Hosted)
Our Experiment
We had 3 accountanting packages, 2 Examples, We send each example to each accountancy package and got different results.
Example one
We send a invoice for
- Qty = 7
- Unit Price $4.13
- Discount 20%
- Total $20.13
- Total $25.44
MYOB Results Example 1
With MYOB, it wants to focus on the Total. MYOB is trying to get to 23.13, It will change our 4.13 Unit Price to 4.130357. And yes it solves the problem. Until you look at these prices, and feel like its not presentable format to the customer. Havng a discount and odd numbers will give you 4.130357, which is a bad user experience.
Reckon Results in Example 1
Because Reckon doesnt have a discount field, We need to push the discount Price directly to the Unit Price field . Again, like all the accountancy packages, it is focus on the Total. The total amount is 23.13 with 7 units. So their price is $3.30429. Its not a nice looking number vs $4.13. The accountancy just needs to get the total. Which in the case it does.
Xero - Example 1
In this example, xero wins in making people happy.
- Unit Price $4.13
- Desc 20%
- Total $23.13
No long numbers here.
Example 2
Now we need to make the discount a strange number, many customers like to have a end total for the customer and then calculate the disc. This is fine, but you need to know that accountancy packages seem to not appreciate this.
MYOB - Example 2
MYOB handle this fine, And looks correct. So they are happy with stange Disc numbers.
Reckon Example 2
Because Reckon doesnt have a disc, its just going to $4.13. the number that comes up is $3.18857. Which is not presentable to a customer. But works
Xero Example 2
Now its Xero turn to play God. Knowing it trying to get to $22.32, it will change the unit price to $4.1297. Which is correct. but the numbers are not nice.
