# Tax and Rounding

#### What is a Tax and Rounding Group

Tax and rounding groups can be set up and products allocated to them. This is done to ensure the correct tax percentage as well as rounding rules are applied when processing invoices.

Each tax group can have multiple tax percentages effective at various dates, of which the latest tax percentage will always apply during a billed cycle.

## Where You Are At In The Process ## Tax and Rounding Group Attributes

#### Group Name

Give your group a sensible name to easily recognise and allocate products to it.

#### Code

A system-generated code is allocated to each group created. This code can be overwritten with a unique code. This code will be used to uniquely identify groups created and is not used during billing validation, billing processing or updating your accounting system.

#### Accounting System Tax Type Code

Input the tax type code of the applicable tax percentage as it has been set up in the accounting system.

#### Default Tax

Select whether you'd like this group to be your default group. All products linked to the default group will automatically be switched to this group. A new product will automatically be linked to this group unless a different group has been selected for the product.

#### Rounding Option

Rounding Option Description Example
Bankers' Rounding This type of rounding (Also known as half-even rounding) looks for the value 5 and rounds to the nearest even number. When the value is not equal to 5, mathematical rounding is applied. Bankers' Rounding is the default rounding option used when processing invoices in Varibill. 23.5 rounded to 0 decimals will become 24 (as the decimal is equal to 5), similarly 24.5 will become 24.

23.6 will become 24 and 23.3 will become 23 (using mathematical rounding, as the decimal is not equal to 5).

Mathematical Rounding Rounds to the nearest.

23.5 rounded to 0 decimals will become 24 (as the decimal is greater than or equal to 5).

23.3 will become 23 (as the decimal is less than 5).

Round Down Rounds a number down, toward zero.

23.5 rounded to 0 decimals will become 23.

23.3 will become 23.

Round Up Rounds a number up, away from zero.

23.5 rounded to 0 decimals will become 24.

23.3 will become 24.

None Truncates (Deletes) the values after the applicable rounding decimal.

23.5 rounded to 0 decimals will become 23.

23.51 rounded to 1 decimals will become 23.5

#### Rounding Decimal

Select the decimal place to which values must be rounded. Any number between 0 and 6 can be selected, of which the default is 0.

This means when this option has been selected as "2", and the value received is 23.578, we will look at the 3rd decimal place ("8") when applying the rounding option.