Here is a short explanation of how the system deals with quantities, prices, exchange rates and tax in calculations.
| Step | Details |
|---|---|
| a | The number of decimal places for both quantities and prices may be defined in system configurations. |
| b | Item unit prices are entered as decimal value in accordance with step a, above. |
| c | An item unit price may be entered either in base or in foreign currency, again in accordance with step a, above. The currency exchange rate is then applied, to calculate the 'other' currency value. The newly calculated unit price is also NOT rounded. |
| d | The unit price in base currency is multiplied with the item order quantity (which may be a decimal value with multiple decimal places) to calculate the item net line total. |
| e | Item discount may be entered either as a percentage or an amount. If latter, then it is converted to a percentage without any rounding and the percentage discount amount applied in the step below. |
| f | The line total net (d) is multiplied with the percentage discount (e) to calculate the discounted line net total - no rounding. |
| g | The discounted line total (f) is multiplied by the tax rate to calculate the line tax amount - no rounding. |
| h | The discounted line net total amount (f) is rounded to 2 decimal places to give the line total. |
| i | The line tax amount (g) is also rounded to 2 decimal places to give the line tax amount. |
| j | Values d, f, h and i, above are multiplied by the exchange rate to calculate the foreign currency equivalents - no rounding. |
