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Invoice-level rounding example

This document provides an example of how the invoice-level rounding feature adjusts invoice totals by rounding to the nearest specified increment.

The following example is used to explain how the invoice-level rounding feature works.

  1. You work with currencies that do not round to the nearest cent (for example, Swiss francs are typically rounded to the nearest 5 cents). In the Customize Currencies billing setting, you set Rounding Increment to 0.05 , and Rounding Mode to Up.

Before the invoice-level rounding feature is enabled, you generate an invoice with the following 2 invoice items from a bill run.

Net Amount

Tax

Processing Type

Invoice Item 1

1

0.11

Charge

Invoice Item 2

1.01

0

Charge

Invoice Total Amount

2.12 (1+0.11+1.01+0)

After the invoice-level rounding feature is enabled, while each invoice item is still rounded with the default 0.01 increment, the invoice total amount is rounded from 2.12 to 2.15. As a result, a 0.03 rounding invoice item is created. See the following table for details.

Net Amount

Tax

Processing Type

Invoice Item 1

1

0.11

Charge

Invoice Item 2

1.01

0

Charge

Invoice Item 3

0.03

0

Rounding

Invoice Total Amount

2.15 (1+0.11+1.01+0+0.03+0)