Rounding is an important aspect with any financial system, and our platform is no exception. Understanding how rounding works within interworks.cloud will give you insight into how we handle rounding for amount calculation on orders, invoices and subscriptions.
Rounding Rules for Discounts
The rule we are using for applying discounts to order items. invoice items and subscriptions is the following: The rounding is performed as the last step before multiplying with Quantity. Below you can find some examples:
Applying a price list discount to a unit price
Unit Price: 2,41€
Quantity: 637
Pricelist Rule: 16,4% discount on sell price
Steps
Results
Step 1: Apply discount to product’s unit price
unit price * discount → 2,41*0,836 = 2,01476
Step 2: Apply rounding to unit price after discount
rounded final unit price → 2.01
Step 3: Multiply with quantity
total: final unit price * quantity → 2.01*637 = 1280,37
Applying multiple discounts to a unit price
Same rules as above apply when we have multiple discounts for a unit price. First we calculate all discounts and we round the final until price before we calculate the total by multiply with the quantity. Below a paradigm:
For scenario where we need to charge an extra license for a prorated period (for adjusting the charges to the renewal date of the subscription), we apply the same rules as above.
Unit Price: 10€
Billing Period: 26/08 - 19/09
Quantity: 4
Price Rule: 10% discount on sell price
Steps
Results
Step 1: Calculate prorated unit price and apply discount
prorated unit price = 25/31 * 10 = 8,06451 * 0.9 = 7,2580 note: the prorate unit price is not rounded before applying the discount
Step 2: Apply rounding to final unit price
rounded final unit price → 7,26
Step 3: Multiply with quantity
7.26*4 = 29,04
Step 4: Add taxes
29,04*(1,25%) = 36,3
Purchase Prices for Tenant Resellers
The Update Tenant Reseller process is responsible for updating the purchase prices for the products the Reseller inherits from his distributor. The purchase prices we copy to reseller’s BSS are the rounded pricelist prices. For example. if a product has unit price = 2.41 and the pricelist rule is 16.4% discount, we initially calculate the pricelist price