====== Cash Payment Penny Rounding ====== ===== 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 values in the table below, then click **Save**. ^ Field ^ Value ^ Notes ^ | 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 0, 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 shown in the table below, then click **OK** to save. ^ Field ^ Value ^ Description ^ | Rounding Kind | Nearest | Rounds to the nearest 5 cent boundary | | Round To | 5 | 5 cent rounding increment | | Fee Type | Penny Round Up | 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. The table below shows the outcome for every possible cents value. ^ Cents ^ Nearest 5 Cents ^ Direction ^ Adjustment ^ Example ^ | .00 | .00 | No change | $0.00 | $10.00 to $10.00 | | .01 | .00 | Round down | negative $0.01 | $10.01 to $10.00 | | .02 | .00 | Round down | negative $0.02 | $10.02 to $10.00 | | .03 | .05 | Round up | positive $0.02 | $10.03 to $10.05 | | .04 | .05 | Round up | positive $0.01 | $10.04 to $10.05 | | .05 | .05 | No change | $0.00 | $10.05 to $10.05 | | .06 | .05 | Round down | negative $0.01 | $10.06 to $10.05 | | .07 | .05 | Round down | negative $0.02 | $10.07 to $10.05 | | .08 | .10 | Round up | positive $0.02 | $10.08 to $10.10 | | .09 | .10 | Round up | positive $0.01 | $10.09 to $10.10 | | .10 | .10 | No change | $0.00 | $10.10 to $10.10 | > **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 ==== ^ Field ^ Value ^ | 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 ==== ^ Field ^ Value ^ | 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. ==== Next Article In Section ==== Click the following link to move to the next article in this section: \\ [[:pos1:pointofsaleindepth:acceptingpayments:acceptacheckpayment|Accept a Check Payment]] ==== Related Topics ==== [[pos1:pointofsaleindepth:postingsalesinpos:penny_rounding_with_tables]] [[pos1:pointofsaleindepth:postingsalesinpos:addafeetosale]] [[pos1:pointofsaleindepth:postingsalesinpos:changeprice]] [[pos1:pointofsaleindepth:postingsalesinpos:entiresaletaxexempt]] [[pos1:pointofsaleindepth:postingsalesinpos:penny_rounding_no_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]]