Rounding Account in Payables

http://aporaclepayables.blogspot.com/2016/01/rounding-account-in-payables.html

Payables creates journal entries in the transaction currency and your ledger currency for all invoices and payments. Payables continues to record gains and losses in the Gain/Loss Accounts you assign. When you pay invoices in a different currency than the payment currency, Payables uses the Rounding account that you define in the Currencies region of the Payables Options window to record the rounding error.

For example, suppose the french franc were still a valid NCU. Your ledger currency is FRF and you enter an invoice in 1000 FRF and enter EUR as the Payment Currency. The Payment Amount converts to 152.53917 EUR, at the fixed conversion rate of 6.555693, and rounds to 152.54 EUR. The payment, converted back to your ledger currency is 1000.0054, which rounds to 1000.01. The .01 FRF difference is recorded in the Rounding account.

The following diagram shows the accounting entries for the previously described example.