Rounding Precision Is Defined on a Rate Component

A rate schedule references a currency code. A rate's currency code defines its maximum number of decimal places. These decimal places, in turn, control the smallest unit to which most rate components can be rounded (i.e., the rate component's precision). For example,

• If a rate's currency has two decimal places, the smallest rounding precision that most of its rate components can have is 0.01. In other words, the smallest unit to which most dollar-based rate components can be rounded is to the cent. Note, whether you round up / down / to the nearest is discussed below.
• If a rate's currency has no decimal places, the smallest rounding precision that most of its rate components can have is 1.00.

The system supports the notion of a rate component having a greater rounding precision than its currency. For example, a rate's currency may support two decimal places, but you can setup rate components to have a rounding precision of 0.05.

The reason that we underlined the word most in the previous paragraphs is that these rules do not apply to "for calculation purposes only" (FCPO) rate components. FCPO rate components don't contribute real amounts to a bill (they exist to calculate intermediate results that are used by later rate components) and therefore they can support a rounding precision of up to 0.00001 (five decimal places).