Rounding (SAP Library - Business Consolidation (SEM-BCS))

Rounding

Purpose

You can use this function as follows:

You can check if the data adheres to the customer-defined rounding rules.
If and when the system discovers rounding differences, you can have the system either display error messages or post adjustment entries to clear the rounding differences.

These differences are usually very small, because they are purely the result of the inaccuracies involved in rounding.

Here are a few examples of rules you can use to check and round your data:

Balance sheet total = 0 (checks if the assets are equal to liabilities and equity)
Total revenue + expense = annual net income
Amortization entries in the balance sheet + amortization entries in the income statement = 0

You typically use the rounding function as part of currency translation because rounding errors are systemically incurred during the translation of currencies. In conjunction with currency translation, you:

make sure that the rounding rules are observed (in the source currency), and you
let the system clear the rounding differences in the target currency.

You also have the option of using the rounding function in areas other than currency translation.

Implementation Considerations

The rounding function requires an accounting data model (that is, a chart of accounts).

Integration

You can implement this function as part of the components SEM-BCS as well as SEM-BPS.

If you use currency translation, you should use the rounding function as an extension of currency translation.

Features

Selections and key figures

You use selections and key figures to see if the rounding rules are being adhered to.

You need selections, for example to build the total of all assets and the total of all liabilities and equity in order to check the rule "Balance Sheet Total = 0".
There are two types of key figures:

Key figures to be checked: The system checks the rounding rules for these key figures.
Key figures to be rounded: For these key figures the system clears the differences using adjusting entries.

The key figures to be checked and those to be rounded must be different because a key figure cannot be checked and rounded at the same time. For example, you can select the local currency as the key figure to be checked, and the group currency as the key figure to be rounded.

Rounding types

You use rounding types when formulating the rounding rules.