Since the abolishment of the penny, all cash sales are now being rounded to the nearest five cents.  If you take in any sales in cash, you will need to be able to make this adjustment in your deposits so that your accounts receivable show the correct balances.

Click Chart of Accounts on the left. 

Scroll down to your expenses and find an account number that is not currently in use, preferably under the administration section.

Scroll back up to and click Add an expense account.

Enter an account number and an account name. For example, 5805 - Cash Rounding Adjustments.  Scroll down, review the remaining settings and click Save.

Now that this account exists in the chart of accounts, you can use it to account for any rounding you have to do when accepting cash from your customers.  This will apply to any cash received, whether it is for a sale in the moment, or a “received-on” account item.

When determining your rounding, the general rule is to round to the nearest 0.05.  For example, 0.21 and 0.22 will round to 0.20.  0.23 and 0.24 will round to 0.25.  0.26 and 0.27 will round to 0.25.  And, 0.28 and 0.29 will round to 0.30.

In your transaction entry screen, you can use this expense account to balance your transaction as necessary for the one or two cents required.  The amount on this line should never exceed 0.02 or -0.02.

Last updated on December 4, 2019 by FCC AgExpert