Rounding

Rounding a numeric value is the act of replacing one numeric value with one that is approximately equal but has a shorter, simpler, or more explicit representation. For example, replacing USD $65.8476 with USD $65.85. Rounding in Zuora takes place with units of measure (UOM) and currency values.

• UOM (unit of measure) : Examples include quantity on a price plan, quantity entered in a subscription, and usage records uploaded in a month.

• Currency : Examples include price, invoice amount, MRR, and tax total.

Precision

Precision of a numeric value describes the number of digits that are used to express that value, including digits to both the left and the right of any decimal point. For example 4.520 has a precision of 4. Zuora supports up to 13 digits to the left of the decimal place, and up to 9 digits to the right.

Currency rounding rules

Currency rounding is defined by the currency itself.

Zuora includes rounding options that you can apply to any individual currency.

• Rounding Mode: Allows you to define whether a currency should be rounded Down , Up , or Half Up . By default, Zuora uses Half Up rounding on all currencies (for example, where 3.49 is rounded to 3 and 3.50 is rounded to 4). The Down and Up options are useful if you need to use a different rounding mode for a particular currency (for example, in Japan, it is often the case that currency values are rounded Down to the nearest Yen).

• Rounding Increment: Allows you to define the currency increment used for rounding. This is useful if you are working with currencies that do not round to the nearest cent (for example, Swiss francs are typically rounded to the nearest 5 cents).

By default, any currency that has a greater number of decimal places than defined by the currency will be rounded based on the near rule (half up), with values of 5 or greater being rounded up (using the Half Up setting).

For example, because the Japanese Yen (JPY) does not have a cent in circulation, the lowest value is 1 JPY. When a user enters an amount with decimal places, Zuora will round it to the nearest non-decimal value. For example, if a user enters 15.67, Zuora Billing automatically convert this value to 16.00.

The same is true when activating or editing a currency from within Zuora Billing Settings Customize Currencies: the Decimal Places values are pre-defined based on the decimal places supported by each currency.

Currency rounding on invoices

Zuora rounds the Invoice Line Item Amount(pre-tax) based on the of the product and on the rounding rules that you have set for the currency. Tax is also rounded off in this manner, but is rounded from the value of the Invoice Line Item (pre-tax).

For example:

• List Price: 454.5454545 (product rate plan charge)

• Invoice Amount (pre-tax): 454.55

  • This is rounded from the List Price.

• Tax: 45.46

  • This is rounded from the Invoice Amount (pre-tax)

• Extended Price: 500.01

If you want to use a List Price that has decimal places, you can remove the 0.01 value offset by processing an adjustment when the invoice has been generated.

Usage rounding rules

A value is rounded based on its predefined rounding rule, and each currency and UOM has a rounding rule associated with it. UOM rounding rules are user-defined, while currency rounding rules are defined by the currencies themselves.

Zuora supports the following rounding rules:

• Round up (usage only): Any usage amount that has a greater number of decimal places than supported by the UOM will be rounded up to the number of supported decimal places. For example, if the UOM, “Gigabyte,” supports two decimal places and the usage record is created with quantity of 2.334 Gigabytes, when rounded up, the rounded numeric value is 2.34 Gigabytes.

• Round down (usage only) Any usage amount that has a greater number of decimal places than supported by UOM will be rounded down to the number of supported decimal places. For example, if the UOM “Users” supports no decimal places and a usage record is created with a quantity of 2.334 Users, when rounded down, it will be 2 Users.

Tax rounding rules

• When tax information is displayed on invoices, rounding applies to tax calculation. For details and examples, see this article .

• With tax-inclusive mode, rounding can happen to the tax amount or the net amount. For details and examples, see this article .