Quantity on Hand = zero; Item Ledger total extended amount has value
While reconciling items in inventory; many items have zero quantity but total extended amount of item ledger has minor values (I.e.: 0.01, 0.02, -0.02 ...etc.)
I believe it is the result of rounding the extended amount (2 decimal digits) for every transaction after multiplying the transaction quantity (2 decimal digits) by the weighted average cost (4 decimal digits). An example is attached to my inquiry.
My question is what is the appropriate solution to adjust those variances?