Lightyear calculates amounts using four or more decimal places to ensure precision and compliance with accounting standards such as GAAP and IFRS. From time to time, small variances can appear between how Lightyear calculates unit prices and tax, and how your supplier has rounded their figures. Lightyear's automatic rounding tools let you resolve these variances quickly and accurately, without manual adjustments.
đNote: Lightyear aligns its rounding logic with your target accounting software's rules to ensure accurate reconciliation of tax and totals.
Set up your default rounding GL/nominal code
Before you can use automatic rounding, you need to configure a default rounding GL code. This is applied to any rounding rows that Lightyear inserts in Panel 2. This is a one-time setup. Once saved, Lightyear will use this GL code for all rounding rows going forward.
Go to the Accountancy Software settings section.
Scroll to the GL code table and locate the default rounding GL code field beneath it.
Select your default rounding GL code.
Identify rounding variances
Lightyear extracts values from a bill's footer and calculates values in Panel 2 based on its rounding logic. If a variance is detected, Lightyear flags it using the Rounding Bells tool.
Open the bill in Lightyear.
Check Panel 2 for the Rounding Bells icon. A flag will appear if a variance has been detected between the extracted footer values and Lightyear's calculated values.
Review the flagged variance to determine whether it relates to the Total or the Tax amount.
Resolve a rounding variance
Once a variance has been flagged, you have two options for how to handle it.
Option 1: Ignore the warning flag
If you are satisfied that the variance does not require adjustment, you can dismiss the flag.
Click the grey Bell icon next to the flagged variance.
đNote: The grey icon will remain visible to indicate that someone has previously elected to ignore the warning flag.
Option 2: Automatically add a rounding row
To automatically calculate and apply a rounding adjustment, follow these steps.
Click the red Bell icon next to the flagged variance. Lightyear will automatically insert a rounding row based on the type of variance:
For a Total variance: a single tax-free row is added to adjust the overall bill total to match the value extracted from the bill's footer.
For a Tax variance: two rows are added â one taxable and one tax-free â to adjust the tax component without changing the overall bill total.
Verify that the tax and line item calculations are correct.
Check for and delete any duplicate or extra rounding rows to avoid over-adjustments.
đNote: Lightyear uses the default rounding GL code and the default tax and tax-free rates from your Accounting Supplier Settings when inserting rounding rows.
Tutorial Video: Automatic rounding feature
Follow the detailed steps below to learn how to address rounding variances effectively.
Best practices
To get the most out of Lightyear's rounding tools and maintain accurate financial records, keep the following in mind.
Always review transactions for discrepancies before exporting to your accounting software.
Ensure that both the Tax and Total fields are adjusted to match your supplier's calculations to avoid discrepancies during export.
Check for and remove any duplicate rounding rows after applying an automatic adjustment.
Use the rounding tools provided by Lightyear to ensure accurate and compliant financial reporting.
Stay informed about updates to accounting standards and how they may impact your financial processes.