calculation of invoices

lukaszr

Hi, I have a problem with the calculation of invoice amounts,
example below, the correct amount should be 1006.59, as far as I can see the amounts are rounded to the third decimal place, in my case it should take four digits after the decimal to correctly calculate the amount on the invoice
https://demo.itflow.org/invoice.php?invoice_id=1183

wrongecho

Hello,

That invoice shows an item for 818.37.

23% tax would be 818.37 x 0.23 = 188.2251. We show that tax as 188.23, because .2251 rounds up to .23

The item cost of 818.37 plus the tax cost of 188.23 comes to 1006.60, which matches the invoice?

Math is not really my area but I don't see what the problem with this?

litechforce

I think I see where the confusion is. The OP is just looking at the 2 decimal places and ignoring the third and so-on. Anything past the 2nd decimal place is a fraction of a cent (in US terms anyway). So the 3rd decimal place is a 5, which rounds up to the nearest cent. This is mathematically correct when not dealing with money. Since we are dealing with money, it is incorrect. ITFlow should only be looking at the 2 decimal places, not the third.

I hope I didn't add to the confusion!

wrongecho

litechforce

So the 3rd decimal place is a 5, which rounds up to the nearest cent. This is mathematically correct when not dealing with money. Since we are dealing with money, it is incorrect. ITFlow should only be looking at the 2 decimal places, not the third.

From what I'm reading about "bankers rounding", we should follow the mathematically correct way?

litechforce

wrongecho You could be right! It's been forever and a day since I've done any development work, so I could be wrong. It's just how I'd do it

johnny

Agree with @wrongecho we should def follow the mathematically correct way