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There is a mismatch between amounts calculated through GINESYS and amounts calculated by human agency

Owned by
Ginesys Knowledge Team
Last updated: Nov 07, 2017 by
Suchandra Nandi (Unlicensed)
2 min read

SYMPTOMS

Certain calculations are yielding mismatched results when done through GINESYS and done by user on his own, let's say, through a calculator.

CAUSE

One of the possible causes of such inaccuracy is the charges applied might have been defined in the Charge Master as to be rounded - off at the time of their application. So when these charges are being applied they are being rounded - off; but the user, calculating with a calculator, is possibly applying the charges without rounding off. This  in calculating behaviour, is causing a big difference in amounts.

RESOLUTION

A probable resolution of this issue might be achieved by following the concept given below: 

Use the rounding-off facility in Charge definition of the Charge Master after understanding its full implication.

Follow the example calculations below:

Let's say an item A001, has the following item charges defined for it a discount of 65% on the gross amount and a Vat of 5% on the net amount after discount. The rate of A001 is INR 1999.

Now if the discounted amount is declared as rounded - off; GINESYS will make calculations of its selling price in the following way:

Net price of A001= Rate of A001 - Discount (rounded - off)

                            = INR {1999 - (65% of 1999)} = INR  {1999 - 1299.35} = INR {1999 - 1299(rounded - off)} = INR 700  

Selling price of A001 = Net price of A001 + Vat on net price

                                  = INR {700 + (5% of 700)} = INR {700 + 35} = INR 735

But if the user with his calculator does not take the round - off into consideration, then he will make calculations of its selling price in the following way:

Net price of A001= Rate of A001 - Discount (rounded - off)

                            = INR {1999 - (65% of 1999)} = INR  {1999 - 1299.35} = INR 699.65

Selling price of A001 = Net price of A001 + Vat on net price

                                  = INR {699.65 + (5% of 699.65)} = INR {699.65 + 34.98} = INR 734.63

So obviously, there will be a mismatch. So please consider the functionality of round-off carefully before applying it in charges.

This should resolve your issue, in case you face it again please contact our Ginesys Care portal - https://care.ginesys.in/ 

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