GL Impact Rounding on Journal Entries
When the total debits and total credits in your base currency do not match, lines in the GL Impact subtab for journal entries and advanced intercompany journal entries may get rounded.
The rounding behavior varies depending on the type of journal entry:
-
Journal entries: NetSuite automatically adjusts the first line in the GL Impact subtab.
-
Advanced intercompany journal entries: NetSuite automatically adjusts the lines with the largest magnitude.
Journal Entries
For journal entries, NetSuite may automatically adjust the first line in the GL Impact subtab when the total debits does not match the total credits in your base currency. For example, let's consider the following Canadian dollar (CAD) journal entry with a CAD to USD exchange rate of 0.69:
|
Debit |
Credit |
|---|---|
|
9.99 |
|
|
9.99 |
|
|
9.99 |
|
|
9.99 |
|
|
|
39.96 |
The general ledger impact for the debits are calculated as follows:
-
9.99 ×0.69 =6.8931
-
Total for debits: 6.89 ×4 =$27.56
The general ledger impact for the credits are calculated as follows:
-
Total for credits: 39.96 ×0.69 =$27.57
The rounding of 6.8931 to 6.89 causes a discrepancy between the debits and credits on the general ledger.
To balance the debits and credits, NetSuite adjusts the first line, rounding it up to 6.90, resulting in the following general ledger impact:
|
Debit |
Credit |
|---|---|
|
6.90 |
|
|
6.89 |
|
|
6.89 |
|
|
6.89 |
|
|
|
27.57 |
This adjustment ensures that the sum of debits equals the sum of credits.
If you update the journal entry and delete the first line, the line with the largest magnitude will be rounded (if rounding is still required).
Advanced Intercompany Journal Entries
For advanced intercompany journal entries, NetSuite may automatically adjust the lines with the largest magnitude in the GL Impact subtab when the total debits does not match the total credits in your base currency. For example, let's consider the following Canadian dollar advanced intercompany journal entry with a CAD to USD exchange rate of 0.69 on each line:
|
Subsidiary |
Debit |
Credit |
|---|---|---|
|
U.S. Subsidiary |
9.99 |
|
|
U.S. Subsidiary |
9.99 |
|
|
U.S. Subsidiary |
9.99 |
|
|
U.S. Subsidiary |
9.99 |
|
|
U.S. Subsidiary |
|
39.96 |
|
Canadian Subsidiary |
9.99 |
|
|
Canadian Subsidiary |
9.99 |
|
|
Canadian Subsidiary |
9.99 |
|
|
Canadian Subsidiary |
9.99 |
|
|
Canadian Subsidiary |
|
39.96 |
The general ledger impact for the debits are calculated as follows for each subsidiary:
-
9.99 x 0.69 =6.8931
-
Total for debits: 6.89 x 4 =$27.56
The general ledger impact for the credits are calculated as follows for each subsidiary:
-
Total for credits: 39.96 x 0.69 =$27.57
The rounding of 6.8931 to 6.89 causes a discrepancy between the debits and credits on the general ledger.
To balance the debits and credits, NetSuite adjusts the lines with the largest magnitude within each subsidiary, rounding them to 27.56, resulting in the following general ledger impact:
|
Subsidiary |
Debit |
Credit |
|---|---|---|
|
U.S. Subsidiary |
6.89 |
|
|
U.S. Subsidiary |
6.89 |
|
|
U.S. Subsidiary |
6.89 |
|
|
U.S. Subsidiary |
6.89 |
|
|
U.S. Subsidiary |
|
27.56 |
|
Canadian Subsidiary |
6.89 |
|
|
Canadian Subsidiary |
6.89 |
|
|
Canadian Subsidiary |
6.89 |
|
|
Canadian Subsidiary |
6.89 |
|
|
Canadian Subsidiary |
|
27.56 |
This adjustment ensures that the sum of debits equals the sum of credits.