Currency rounding and currency precision are critical components in any mathematical or financial system, and Cloudbeds is no exception. We continually check government regulations and strive to serve our clients with the most up-to-date solutions to address their local monetary rules and policies.
Cloudbeds PMS uses industry-standard calculation and currency rounding methodologies to help your property produce more accurate reports. This improvement will help avoid revenue loss, produce correct tax returns, and prevent government penalization.
What are currency rounding and precision?
Rounding - when you replace a numeric value with one that is approximately equal but has a shorter, simpler, or more explicit representation. For example, replacing USD $65.8476 with USD $65.85.
Precision - number of digits used to express the value, including digits to the left and right of any decimal point. For example, 4.520 has a precision of 4.
Currency Rounding Rules
Cloudbeds PMS uses Half-Up Rounding on all currencies. The majority of the currencies have 2 decimals. The system starts rounding monetary values with at least 3 digits after the decimal to 2 digits for these currencies. For example, a $454.545 transaction will become $454.55.
The system will check the correct decimal for other currencies and round them accordingly. (For JPY, 3.4 should be rounded to 3 and 3.5 to 4).
Transactions with non-primary currencies
We currently support foreign currencies at the transaction level and store local and foreign currencies in a single transaction. Cloudbeds PMS supports the same Half-Up Rounding method for foreign currency transactions and foreign currency precision when rounding.
Item-level rounding (Default option)
Cloudbeds PMS supports item (or transaction)-level rounding, which is a more globally used standard for tax calculation. Each transaction or tax calculation must be rounded individually.
Example:
| Transaction (Not rounded) | Line-Level Rounding |
|---|---|
| 3.4578 | 3.46 |
| 8.7962 | 8.80 |
| 154.5764 | 154.58 |
| 32.1454 | 32.15 |
| 198.9758 | 198.99 |
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