What the rounding account is for

Sometimes an invoice and its payment differ by a very small amount. A cent or two, occasionally a little more on a foreign-currency order.

The rounding account is where that difference goes, so the payment still matches the invoice and nothing sits unreconciled over a rounding error.

Where the difference comes from

• Currency conversion, where the rate applied to the order and the rate on the settlement don't produce exactly the same figure
• Tax calculated to more decimal places than the invoice can show
• Line-level rounding adding up differently from the order total

What it is not

It isn't a general discrepancy account. It exists for small residuals, not to absorb real differences. If you see meaningful amounts landing there, something else is wrong and it's worth telling us about.

It doesn't calculate tax. Nothing about the rounding account changes how GST or VAT is worked out.

Setting it

Choose it on Setup - Xero. Most stores use a small expense or sundry account; your accountant will have a view on which.

Not sure whether an amount in there is normal? Email us at help@hyvelabs.co with your shop URL and the invoice.