Understanding Rounding Rules

You can specify rounding rules for calculating a unit price. For example, you can define rounding amounts to the nearest cent or to multiples of 50, or you can specify whether to remove the cent amount if the total amount is higher than 1,000.00. You can establish rounding rules based on the customer, item, currency code, and so on.

Where rounding occurs depends on the sequence in which the rounding adjustment appears on the price adjustment schedule. This table describes two adjustment schedules that use rounding rules:

Schedule	Sequence
Schedule A	10 base price adjustment 20 promotional discount 30 rounding adjustment In this example, the rounding adjustment is the last adjustment that the system processes. This sequence ensures that the rounding occurs before the system calculates the final unit price.
Schedule B	10 base price adjustment 20 rounding adjustment 30 accrual adjustment In this example, the system processes the rounding adjustment before processing the accrual adjustment.

To use rounding rules, you must specify the adjustment control code as a rounding adjustment in the Price Adjustment Definition (P4071) program. The system displays the rounding information on the Price Adjustment Detail form and calculates the rule for the target application, such as Sales Orders Management or Procurement.

The system uses these tables when processing rounding rules:

• Price Adjustment Detail table (F4072).

• Price Adjustment Ledger File table (F4074).

• Price Adjustment History Workfile table (F40UI74).

• Price Adjustment Type table (F4071).

• Price Adjustment Schedule table (F4070).