Slight Rounding Differences Recorded by the Payment Post

When you post foreign or alternate currency payments, the system might create journal entries for slight rounding differences. These slight rounding differences are created when a foreign or alternate currency payment is applied to a voucher and the domestic amount of the voucher is different from the domestic amount of the payment. The rounding difference, which is immaterial, is recorded in a realized gain or loss account even though the amounts are not caused by fluctuations in exchange rates.

Typically, rounding differences occur on transactions that involve multiple vouchers and one payment, or multiple payments and one voucher. For these transactions, a rounding difference might occur when the system converts amounts between a foreign and a domestic currency, or an alternate and a domestic currency.

To record the rounding difference, the system creates an offset journal entry in the realized gain or loss account as defined by AAI items PG and PL (for foreign currency payments) and PY and PZ (for alternate currency payments) when you post the payment.