FrontAccounting forum — Error with currency conversion

Re: Error with currency conversion

2013-05-21T20:41:12Z

I guess this is related to some change in php itself.
Janusz

Re: Error with currency conversion

2013-05-16T14:02:40Z

My product is priced in grams, so we need the 6 decimal places for accuracy when converting to USD.

We've decided to just ignore these small errors showing on the trial balance.

The question came up because we have been using this system for a couple of years now, always with a perfect trial balance, even at 6 decimal places, but since February of this year, we have noticed these small errors.

Re: Error with currency conversion

2013-05-16T10:45:27Z

Is any reason why you use 6 or 8 decimals? Rounding errors are normal in floating point arithmetic, and are acceptable as long as they do not amplificate somehow. Normally having 2 decimal places for price type amounts is enough, and in some countries there are further rounding used.
Janusz

Re: Error with currency conversion

2013-05-10T20:43:49Z

Actually the problem is still showing up with 8 decimal places - the example above is now showing as:

Debit Credit

3,400.37235861 3,400.37235862

I suppose I can use 8 decimal places when invoicing and switch back to 6 for everything else, but isn't there a better solution?

Re: Error with currency conversion

2013-05-10T19:03:54Z

After experimenting a bit, I can see that this is the result of a rounding error.

I can overcome this by increasing the number of decimal places on prices from 6 to 8.

Is there another solution?

Error with currency conversion

2013-05-10T17:00:34Z

I am using two currencies - selling in USD and buying in TWD, and my base currency is set to TWD.

I'm seeing errors in the general ledger which in think may be related to the currency conversion of sales invoices. This causes my trial balances to be out.

These are very small amounts, but I would like to know if anyone has a suggestion for me.

Here's an example:

General Ledger Transaction Details Reference Date Person/Item
Sales Invoice #3892 SI891 02/17/2013
Payment Status: Completed Amount: 104.56 USD

Account Code Account Name    Debit    Credit
4010    Sales    836.038821
4010    Sales    488.649855
4510    Discounts Given    97.729971
4010    Sales    893.697341
4010    Sales    288.289000
4510    Discounts Given    288.289000
4010    Sales    893.697341
1200    Accounts Receivables 3,014.353388
Total    3,400.372359 3,400.372358