On Tue, 22 Dec 2020 10:22:44 -0500 Michael or Penny Novack <stepbystepf...@comcast.net> wrote:
> > Thomas > > > > Another perspective on this is that in practice what rounding > > procedure a bank or other external body may apply may depend on any > > legislative requirements (usually by taxation bodies) and their > > internal accounting policies and these are not under GnuCash's > > control and may also vary between different legal jurisdictions. > > > > It is impossible for GnuCash to know apriori how a particular > > amount will be rounded and appear in external statements (hopefully > > someone is not skimming off the fractions of cents from the > > rounding) against which the GnuCash records will ultimately be > > reconciled, so no matter what rounding procedure was used by > > GnuCash in any internal calculations, it can end up being wrong > > because the bank chooses to or is required to round in a different > > manner. > > > > David Cousens > > It can be MUCH worse than that, because the consequences of > legislated rounding (in filling out filings) may be complicated. Thus > for US non-profits, if they have to file a 990/990EZ this much not > only be "whole dollar" but must match the previous year's filing. But > rounded (A+B) does not necessarily equal rounded A + rounded B. In > other words, there is no way to do this by "formula" as will require > human decision as to what "fudging" will result in minimal distortion > << for example, if use truncate instead of rounding for THIS amount > and round up on THAT one all will work out >> > > So some years don't have to fudge any amounts, other years just one > or two, still other years nasty and have to do many. > > Same with banks. Some may use one method of rounding, others another. > And sorry, but although many currencies integral to a specific > decimal point they may sometimes use more << like the "mil" seen in > tax rates. water rates, etc. >> > > Michael D Novack > I'm just rephrasing this... If Gnucash (or any accounting program) rounds values you have to know exactly how this has been done, and you have to know your jurisdiction's rules, so you can see if they match. If they don't match, then you would have undo the accounting program's rounding and then apply the correct one for your jurisdiction. I think that we have taken a peek down a rabbit hole and found enormous complexity past the entrance. Liz _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
