how to handle amount discrepancies in payables which are happening due to rounding.

Summary:

how to handle amount discrepancies in payables which are happening due to rounding total amount while matching invoice to purchase order.

EX. we have purchase order with quantity 100 and unit price 0.076. We are partially invoicing the PO with quantity 20.60 and unit price 0.076 which will make total amount as 20.60 * 0.076= 1.5656. Since our currency precision is set to 2 decimal , the invoice line amount becomes 1.57 (i.e. after rounding the total amount 1.5656). In this scenario invoice amount is increasing by 0.0044 due to rounding. How this can be handled? Is the organization supposed to overpay supplier. Here I have taken small amounts just for example but in real business scenario this would be