Xero Rounding Account
In Xero (and accounting software in general) it is often necessary to make use of a 'rounding' account to record any variances that occur as a result of the rounding process.
This is especially important when linking two pieces of software, where the rounding methods used in the two may differ slightly (as they do in Xero, MYOB, and HirePOS, for example)
HirePOS attempts to take care of rounding variations for you during export by creating a 'rounding adjustment' line in the invoice when Xero and HirePOS disagree on the total by less than 5 cents. To make this work, it is important to let HirePOS know what your rounding account code is in Xero.
Occasionally, the nature of the variance will require your assistance, and you will see an error when attempting to export to Xero. This will be covered in the seccond section of this article.
Setting your Xero Rounding Account Code in HirePOS
Finding your Xero Rounding Code
By default, the Xero Rounding Code is 860, however this is sometimes not the case, and it should be checked. To find your Xero Rounding Code:
- Log in to Xero in the normal way (not via HirePOS)
- Navigate to Accounting > Chart of Accounts
Roundingin the search field above the accounts list, and press Search
- You will see the Code listed for the Rounding Account on screen. ('860' by default)
Entering your Xero Rounding Account Code in HirePOS
- Navigate to the HirePOS Reminders Screen (Home Screen)
- Press Xero to launch the exporter
- Log In to your Xero Account
- When on the exporter screen, navigate to the Options tab.
- Ensure that the number in the Xero Rounding Code field matches the code found above in the Xero Chart of accounts.
Error: The line total of ***.** does not match the expected line total of ***.**.
This error can show is self when there is a rounding variance that is great enough that human intervention is required, or when there is another variance that is preventing a successful export.
The likelihood of this occurring increases as the complexity of your pricing structure and detail of your values increases.
Help the Rounding in the Invoice
The above error is usually highlighting that there is a significant difference between the 4 decimal place calculations and the 2 decimal place calculations that can be performed on the line in question.
To help HirePOS and Xero agree on a value
- Open the invoice in question
- Observe the Invoice Total and Subtotal at the time of opening (perhaps write it down)
- Click once inside the Line Total field of each line, and then into another field (an empty one at the bottom, for example)
- This simple click process will trigger HirePOS to re-calculate the line values with the total as the priority for accuracy rather than the each price, as it normally does by default.
- Check the Invoice Total and Subtotal
If the Invoice Total and Subtotal are the same as before:If they are exactly as they were when you entered, press Save and proceed to re-try exporting to Xero
If the Invoice Total and Subtotal are different than beforeIf there is now a minor difference in your Invoice Total or Subtotal, it is best to correct this by adding a 'rounding' line to the invoice. (See Create a Rounding Item in HirePOS for more information on this)
-In the case where the Invoice Total is now less than before, add a new 'rounding' line for the same amount, as a positive. (e.g
-In the case where the Invoice Total is now more than before, add a new 'rounding' line for the same amount as a negative (e.g