Explaining the rounding amounts in the accounting entries for payments.

Hi,

Here is the scenario which I want to explain by example.We are on R12.

A payables invoice on (01-OCT-2008) for amount CAD $195.35  = $180.04 (USD).

The currency conversion rate on 01-OCT-2008 is .951112801

The accounting entries for liability show an amount of $180.04 .

More specifically,

Freight 172.42 (dr)

Liability 181.04(cr)

Misc Expense 8.62(dr)

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Then a payment was made on 02-OCT-2008 for amount CAD $195.35 (=$180.04 USD).

And the currency conversion rate on 02-OCT-2008 is same 0.951112801

However the accounting entries for liability show an amount of $180.03 and Loss for $0.01.

More specifically

Cash Clearing 181.04(cr)

Liability 181.03(dr)

Loss 0.01(dr)

Loss 0.00(cr)

Cash 181.04(cr)

Cash Clearing 181.05(dr)