Decimal Precision for Financial Accounts

Within MAC-PAC, you have two options for handling decimals:

·     Two decimal places.  This option is appropriate for currencies such as U.S. dollars.

·     Zero decimal places.  This option is appropriate for currencies such as the Italian lira or Japanese yen.

Along with the standard two-decimal precision currency amount, you can also specify currencies which use zero decimal precision.  These currencies are specified on Reference File category D89, Decimal Precision.  If a record exists in this category for a currency code, all amounts in that currency are rounded to the nearest whole unit throughout the software.  If a record does not exist for a currency code, amount in that currency code are rounded to the nearest hundredth.  In a single currency environment, entering a currency code of ZZZ will cause all amounts to be rounded to the nearest whole unit.

If you are working in zero decimal precision, the value amounts will be affected in two areas:  (1) screen validation and (2) behind the scenes calculations.  For screen validation, the unit amount is either going to be a zero decimal or a two-decimal amount, depending on if the currency was specified on D89.  For behind the scenes calculation, if the unit amount is calculated as a two-digit number, but it requires zero decimal precision, then it will automatically be rounded up or down to the nearest whole unit.  For example, you are working in Italian Lira currency and it uses zero decimal precision.  You have an amount for $65 that has VAT calculated at 12%.  When calculated, you will pay $7.80 for VAT.  However, since you are using zero decimal currency, this amount will be rounded to $8.00.

The following modules will be affected by zero decimal precision:

Accounts Payable
Accounts Receivable
Draft Management
General Ledger
Inventory Accounting
Order Processing
Purchase Order

Note:    This should not be confused with the decimal precision set-up by the installation facility for inventory balances, quantities.