Example 3 - Account With Rounding Discrepancy

This example shows the resulting bill segment calc lines for an account with 3 service agreements. Here the accumulated tax amount at the bill level is $21.29 with taxes calculated and rounded for each SA's bill segment. However, if the same taxes were calculated for each SA's bill segment and then accumulated and rounded at the bill level, the accumulated tax amount would be $21.30 implying that taxes are applicable and the account should be billed for the tax amount of $21.30 accounting for the discrepancy of $0.01.

Bill Segment

Bill Line

Amount

Pre-rounding Amount

Bill segment for SA 1

964.70 units @ $0.10

96.47

96.47000

Tax @ 5% on $96.70

4.82

4.82350

Bill Segment Total

101.29

Bill segment for SA 2

2222.90 units @ $0.10

222.29

222.29000

Tax @ 5% on $222.29

11.11

11.11450

Bill Segment Total

233.40

Bill segment for SA 3

1072.40 units @ $0.10

107.24

107.24000

Tax @ 5% on $107.24

5.36

5.36200

Tax Discrepancy

0.01

Bill Segment Total

112.61

Note:

Pre-rounding amount. Rate application captures two calculated amounts on the resulting bill segment calc lines. The first is the calculated amount rounded to two decimal places, and the second is a raw calculated amount with a five decimal precision. The base package algorithm that calculates taxation thresholds uses both amounts to account for any rounding discrepancy; however, only the raw calculated amount is used to compare against the taxation threshold.