CoreBridge is dedicated to ensuring all of the calculations within your system are precise and accurate. To that end, CoreBridge intentionally stores up to 10 decimal places. This provides the most accurate calculations to cover a wide variety of instances and gives you the assurance of precision. For simplicity, CoreBridge then rounds to 2 decimal places after all calculations have been made to give you a final value. We understand the importance of financial data certainty for informed decisions and competitiveness.
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How CoreBridge Rounds
CoreBridge stores up to 10 decimal places internally during calculations, such as individual Components in Assemblies and on individual Unit Prices in a Line Item. In these instances, you may see up to 3 decimal places displayed on the screen to indicate more decimal places are being stored than what you may see. When the final step of a calculation is reached, such as the price on a Line Item, the system will round to 2 decimal places. At that point there will be 2 decimal places both displayed and stored as your final value.
Example:
a. The Price Per Item shows 3 decimal places, meaning there are up to 10 decimal places saved internally for calculation purposes.
b. After being multiplied by the Quantity, the end calculation is displayed in the Price field on the Line Item as a total that has been rounded to 2 decimal places.
Why Rounding Matters
Correct rounding is necessary for a variety of documentation such as Reports, Reconciliations, and taxes. Rounding and financial veracity also matter for your pricing in order to stay competitive for your customers.
Example:
In this example, you have a customer who orders 50,000 decals. The unit price for each decal is $0.1153827431.
Scenario 1 - Rounding at the Unit Price:
If rounding were to be calculated on the unit price you would see the price change from $0.1153827431 to $0.12 for each decal.
The unit price would then multiplied by the total number in the Order (0.12 x 50,000 = 6,000), resulting in a total of $6,000.00 for your customer.
Scenario 2 - Rounding at the final step:
If rounding were calculated at the final step you begin by multiplying the unit price of $0.1153827431 x 50,000 for a total of $5,769.135 ($0.1153827421 x 50,000 = $5,769.135).
This number is then rounded to 2 decimal places, for a total price of $5,769.14.
Note: This translates into a direct savings to your customer of $230.87 as compared to the first scenario.
As this example shows, rounding at the final step as CoreBridge does will ensure that your pricing is more accurate and more competitive.
FAQ
1. Question: How does this affect Estimate / Order entry?
Answer: Calculations within Line Items are stored up to 10 decimal places at the unit level. The display will show up to 3 decimal places. At the final Line Item calculation, the unit price will be multiplied by the quantity using the internal expanded decimal places unit price and then rounded to 2 decimal places for the Line Item Total. All Line Item Totals (rounded to 2 decimal places) are added together to calculate a final Estimate or Order price.
2. Question: How does this affect tax calculations?
Answer: Tax rates that have been defined in your accounting settings may be up to 10 decimal places, while up to 3 decimal places will be displayed during Estimate and Order entry. Once an Estimate or Order has a Pre-Tax Total (which is the amount after discounts and fees have been applied to the subtotal), the tax group selected will be multiplied by the Pre-Tax Total. The tax group may be a number up to 10 decimal places, while the Pre-Tax Total will be a pre-rounded up to 2 decimal places amount. The total after multiplying these two amounts together will then be rounded to 2 decimal places and added to the already rounded Pre-Tax total for a final total.
Note: If you have a tax lookup integration active, it will automatically find and apply the tax amount based off of your customers location. This amount may also be up to 10 decimal places.
Example: An order with a Pre-Tax Total of $5,769.14 multiplied by a tax group rate of 7.625% would equal a tax amount of $439.8969 ($5,769.14 x 0.07625 = $439.896925).
The tax amount would then be rounded to 2 decimal places, in this case $439.90.
The rounded tax amount of $439.90 would then be added back to the Pre-Tax Total of $5,769.14 for a final total of $6,209.04 ($439.90 + $5,769.14 = $6,209.04).
3. Question: How does this affect financial reconciliations?
Answer: Financial calculations for reconciliation purposes are rounded to 2 decimal place. This is consistent with data integrated from credit card integration providers as well as accounting software packages. CoreBridge uses 2 decimal places for income accounts and financial reconciliations to be consistent with external financial providers.
Note: Using 2 decimal places to be consistent with financial providers minimizes rounding issues when doing reconciliations.