====== Cash Payment (Penny) Rounding ======

//Applies to: Liberty REACT POS 5.x and later | Last updated: May 2026//

===== Overview =====

**Penny rounding** (also called //cash rounding//) automatically adjusts the cash-due amount on a transaction to the nearest 5-cent increment when a customer pays with cash. Because 1¢ and 2¢ amounts cannot always be made in exact change, rounding eliminates the need to handle sub-5¢ coin amounts at the register.

In Liberty REACT POS, penny rounding is implemented as a **variable-amount fee line item** that is automatically added to the sale when Cash is selected as the tender type. The rounding adjustment posts to a dedicated GL account, whether positive or negative, so your books stay balanced.

Key facts:

  * **Cash payments only.** Credit card, debit, gift card, and all other tender types always settle to the exact cent.

  * **Bidirectional.** The fee can be negative (customer pays less) or positive (customer pays more), depending on which 5¢ boundary is nearest.

  * **Tax unaffected.** Tax is calculated on the original pre-rounding amount and is never changed by the rounding adjustment.

  * **Fully visible.** The rounded amount appears as a named line item on screen and prints on the receipt.

===== Create the Fee Type =====

Before enabling rounding in Setup, you must create a dedicated Fee Type that the system will use to post the rounding adjustment. **If this step is skipped, the Fee Type dropdown in Setup will be empty and rounding cannot be activated.**

==== Navigate to Fee Types ====

From the Liberty POS main screen, press **More**, then press **Fee Types**.

{{:docimages:02_main_screen.png|Main screen, press More to continue}}

{{:docimages:04_more_menu_fee_types.png|More menu, press Fee Types}}

==== Add a New Fee Type ====

The Maintain Fee Types dialog lists all existing fee types. Click **Add**.

{{:docimages:05_fee_types_list.png|Maintain Fee Types, click Add}}

==== Configure the Penny Round Up Fee Type ====

Fill in the Maintain Fee Type form with the following values, then click **Save**.

  * **Description:** Penny Round Up. This name will appear on the sale screen and receipt.

  * **GL Account:** Penny Round Up. Create a matching GL account if it does not already exist.

  * **GL Account Type:** Other Income. Rounding adjustments post as other income.

  * **Tax Type:** Leave blank. Rounding adjustments are not taxable.

  * **Amount Kind:** Variable Amount. The system calculates the correct amount per transaction automatically.

  * **Amount:** 0. Leave at zero. The system fills this in per sale.

  * **Active:** Checked. Must be active for the fee type to appear in the Setup dropdown.

{{:docimages:06_fee_type_add_form.png|Maintain Fee Type form, Penny Round Up configuration}}

Click **Save**, then **OK** to close the Maintain Fee Types dialog.

===== Enable Rounding in Setup =====

==== Navigate to Setup ====

From the More menu, press **Setup**.

{{:docimages:07_more_menu_setup2.png|More menu, press Setup}}

The Setup dialog opens with a left-side navigation panel. General is selected by default.

==== Configure Cash Payment Rounding ====

In the lower-right corner of the General panel, locate the **Cash Payment Rounding** box. By default, Rounding Kind is set to None and rounding is inactive.

{{:docimages:08_setup_general_rounding_none.png|Setup General, Cash Payment Rounding disabled with Rounding Kind set to None}}

Set the three fields as follows, then click **OK** to save.

  * **Rounding Kind:** Set to Nearest. This rounds to the closest 5 cent boundary.

  * **Round To:** Set to 5. This is the 5 cent rounding increment.

  * **Fee Type:** Select Penny Round Up. This is the fee type you created in the previous section.

{{:docimages:10_setup_general_rounding_nearest.png|Setup General, Rounding Kind set to Nearest with penny rounding enabled}}

> **Note:** Once you click OK, penny rounding is immediately active for all new cash transactions. No additional steps are required.

===== How Rounding Works at the Register =====

Once enabled, **no cashier action is required.** Rounding is triggered automatically when Cash is selected as the tender.

==== Before Tendering Cash ====

The sale screen shows the standard unrounded total. The cashier rings up items as normal, then selects Cash.

{{:docimages:12_sale_before_cash_8587.png|Sale screen with Total Due of $85.87 before Cash is pressed}}

==== After Pressing Cash ====

The system instantly calculates the nearest 5 cent boundary, adds the Penny Round Up line item, updates the Total Due, and records the payment. Balance Due shows $0.00.

{{:docimages:13_sale_after_rounding_8585.png|After Cash is pressed, Penny Round Up of negative $0.02 is applied and cash due is $85.85}}

> **Note:** In this example, the Sub-Total dropped from $80.82 to $80.80 after the negative $0.02 fee was applied, while Total Tax stayed at $5.05 unchanged. Tax is always calculated on the original item prices.

===== Rounding Rules =====

Liberty POS uses **Nearest** rounding, which finds the closest 5 cent boundary to the actual total and rounds toward it. The rules for every possible cents value are listed below.

  * **.00 and .05:** No change. These are already on a 5 cent boundary. No fee is added.

  * **.01 rounds to .00:** Round down by $0.01.

  * **.02 rounds to .00:** Round down by $0.02.

  * **.03 rounds to .05:** Round up by $0.02.

  * **.04 rounds to .05:** Round up by $0.01.

  * **.06 rounds to .05:** Round down by $0.01.

  * **.07 rounds to .05:** Round down by $0.02.

  * **.08 rounds to .10:** Round up by $0.02.

  * **.09 rounds to .10:** Round up by $0.01.

> **Note:** .X2 and .X7 are each 2 cents above the lower boundary and round down. .X3 and .X8 are 2 cents below the upper boundary and round up.

===== Live Transaction Examples =====

The following two transactions were captured from Liberty REACT POS with penny rounding active.

==== $85.87 Rounds Down to $85.85 ====

**Item:** Gucci Boots at $80.82\\
**Tax:** $5.05\\
**Original Total Due:** $85.87\\
**Rounding Adjustment:** Penny Round Up, negative $0.02, rounds down\\
**Cash Due:** $85.85

The cents portion (.87) is 2 cents above the .85 boundary and 3 cents below .90, so it rounds **down** to .85. The customer saves $0.02.

{{:docimages:12_sale_before_cash_8587.png|Transaction showing original total of $85.87}}

{{:docimages:13_sale_after_rounding_8585.png|Transaction after rounding with Penny Round Up of negative $0.02 applied and cash due of $85.85}}

==== $85.82 Rounds Down to $85.80 ====

**Item:** Gucci Boots at $80.77\\
**Tax:** $5.05\\
**Original Total Due:** $85.82\\
**Rounding Adjustment:** Penny Round Up, negative $0.02, rounds down\\
**Cash Due:** $85.80

The cents portion (.82) is 2 cents above the .80 boundary and 3 cents below .85, so it rounds **down** to .80. The customer saves $0.02.

{{:docimages:14_sale_before_cash_8582.png|Transaction showing original total of $85.82}}

{{:docimages:15_sale_after_rounding_8580.png|Transaction after rounding with Penny Round Up of negative $0.02 applied and cash due of $85.80}}

===== GL Posting and Reporting =====

Because the rounding adjustment is a Fee Type line item, it posts through Liberty POS's standard fee posting workflow.

  * **Positive adjustments** (rounding up) post as income to the Penny Round Up GL account.

  * **Negative adjustments** (rounding down) post as a negative to the same GL account.

  * Over high transaction volume, the net impact on the GL account tends toward zero.

  * The adjustment is visible in the Transaction Journal and any report that includes fee line items.

===== Disabling Penny Rounding =====

To turn off penny rounding at any time:

  - Go to More, then Setup, then General.
  - Set Rounding Kind back to None.
  - Click OK.

Cash transactions will immediately return to exact cent amounts.

===== Frequently Asked Questions =====

==== Does rounding affect credit or debit card payments? ====

No. Only cash tenders are rounded. All other payment types settle to the exact cent.

==== What about split tender transactions? ====

The card portion is charged exactly. Rounding is applied only to the remaining cash due balance after the card payment is posted.

==== Does the rounding adjustment affect tax? ====

No. Tax is calculated on the original item prices before rounding. The Penny Round Up fee type has no Tax Type assigned, so it generates no additional tax.

==== Why is it called Penny Round Up if it can also round down? ====

The fee type name is user defined. You can name it anything. The same fee type handles both directions, posting a positive or negative amount as needed.

==== Can I round to a 10 cent increment instead of 5? ====

Yes. Change the Round To value in Setup General from 5 to 10. The same fee type works regardless of the increment.

----
//Document maintained by: Support Team, Resale World//\\
//For questions, contact: support@resaleworld.com//

==== Related Topics ====

[[pos1:pointofsaleindepth:postingsalesinpos:penny_rounding_no_tables]]
[[pos1:pointofsaleindepth:postingsalesinpos:addafeetosale]]
[[pos1:pointofsaleindepth:postingsalesinpos:changeprice]]
[[pos1:pointofsaleindepth:postingsalesinpos:entiresaletaxexempt]]
[[pos1:pointofsaleindepth:postingsalesinpos:penny_rounding_with_tables]]
[[pos1:pointofsaleindepth:postingsalesinpos:pospayoutrefund]]
[[pos1:pointofsaleindepth:postingsalesinpos:postitemtaxexempt]]
[[pos1:pointofsaleindepth:postingsalesinpos:refunds]]
[[pos1:pointofsaleindepth:postingsalesinpos:remoteitemfromsale]]
[[pos1:pointofsaleindepth:postingsalesinpos:selectingpromotions]]
[[pos1:pointofsaleindepth:postingsalesinpos:sellitemdiscount]]