Currency Rounding - Everything you need to know

Follow

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 that are used to express the value, including digits to both the left and the right of any decimal point. For example, 4.520 has a precision of 4.

Currency Rounding Rules:

Half-Up Rounding

Cloudbeds PMS uses Half Up rounding on all currencies. The majority of the currencies have 2 decimals. The system should start to round 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. For other currencies, the system will check the correct decimal and round them accordingly. (For JPY, 3.4 should be rounded to 3, and 3.5 is rounded 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
Powered by Zendesk