Cash Rounding in Sales Module

Overview

Due to the ongoing penny shortage across North America, many businesses are no longer able to reliably receive or distribute pennies for cash transactions. As a result, cash payments are increasingly being rounded to the nearest five cents.

To support this industry-wide change and ensure accurate financial reporting, we are introducing a Cash Rounding feature within the POS. This feature allows cash transactions to be rounded while maintaining precise revenue, tax, and accounting records.

This article explains why cash rounding is being introduced and what steps you need to take to fully enable and use the feature.

Good to know: Cash Rounding is optional and off by default. Each location can choose whether or not to use this feature.

Why We Are Introducing Cash Rounding

1. Responding to the Penny Shortage

Financial institutions and retailers are experiencing reduced circulation of pennies, making it difficult to provide exact change for cash transactions. Cash rounding has become a common and widely adopted practice to address this challenge.

2. Maintaining Accounting Accuracy

Cash rounding helps ensure:

• Cash drawers match the actual cash collected
• Revenue and taxes remain calculated at exact values
• Rounding differences are transparently tracked

Without a dedicated rounding process, businesses may experience small but persistent discrepancies in cash reconciliation.

3. Industry & Compliance Alignment

Our cash rounding approach follows common accounting and tax best practices:

• Rounding is applied only to the final cash amount due
• Sales tax is calculated on the exact, unrounded total
• Rounding differences are recorded separately and are fully auditable

Compliance & Local Regulations

Important: Cash rounding laws and consumer protection requirements may vary by state, province, or local jurisdiction. Before enabling cash rounding, we recommend confirming that your selected rounding method and increment comply with applicable laws and regulations in your area.

foreUP provides configurable cash rounding tools, but each operation is responsible for determining the appropriate rounding practices for its business and jurisdiction.

We recommend:

• Using symmetrical rounding whenever possible
• Applying rounding consistently to all cash transactions
• Clearly communicating rounding practices to customers
• Consulting your accountant or legal advisor if you have compliance questions

Important: Some jurisdictions may restrict or regulate certain rounding methods or increments. Businesses are responsible for ensuring compliance with applicable laws and regulations before enabling non-standard rounding configurations.

How Cash Rounding Works

When enabled, cash rounding will:

• Apply the selected rounding logic (symmetrical, round down, round up) to the nearest increment selected ($0.05, $0.10, $0.25, $1.00)
• Apply only to cash tenders
• Leave card, digital, and other non-cash tenders unchanged

Best Practice Recommendation: Symmetrical rounding to the nearest $0.05 is the most commonly used and widely accepted cash rounding method.

Tip: Rounding is applied only to the final cash amount due. Line items, subtotals, and taxes are calculated using exact values.

Rounding Rules

Symmetrical:

• Totals ending in $0.01 or $0.02 round down
• Totals ending in $0.03 or $0.04 round up
• Totals ending in $0.06 or $0.07 round down
• Totals ending in $0.08 or $0.09 round up

Round Down:

• Totals ending in $0.01, $0.02, $0.03, or $0.04 round down
• Totals ending in $0.06, $0.07, $0.08, or $0.09 round down

Round Up:

• Totals ending in $0.01, $0.02, $0.03, or $0.04 round up
• Totals ending in $0.06, $0.07, $0.08, or $0.09 round up

Compliance Note: Some jurisdictions may prohibit or discourage rounding methods that consistently favor the business, such as always rounding up. We recommend reviewing local regulations before enabling non-symmetrical rounding methods.

Example for Symmetrical:

Calculated Total	Cash Collected	Rounding Adjustment
$10.02	$10.00	- $0.02
$10.03	$10.05	+ $0.02

Accounting & GL Treatment

To ensure accurate accounting, cash rounding differences are posted to a dedicated GL account.

• Revenue and taxes post at their exact calculated amounts
• Cash posts at the rounded amount actually collected
• The rounding difference posts to your selected cash rounding account

Accounting note: Over time, symmetrical rounding should generally net close to zero, making it easy to reconcile and audit.

Disclaimer: foreUP does not provide legal, tax, or accounting advice. Businesses should consult their accountant or legal advisor regarding local compliance requirements.

What You Need to Do to Use Cash Rounding

Step 1: Enable Cash Rounding (Optional)

Cash rounding is off by default. Each location can choose whether or not to use this feature.

1. Click on the top-left module dropdown and select Settings
2. Select Sales on the left column
3. In the blue column, select Cash Rounding
4. Select the desired cash rounding logic and increment
5. Fill in the Department, Category, Subcategory, and GL Code fields with the desired values for reporting purposes
6. Click Save Settings in the top right

Recommended: Use symmetrical rounding with a $0.05 increment unless otherwise required by your local jurisdiction or business policies.

If your operation does not accept cash or prefers not to round, no action is required.

FAQ

Does cash rounding affect sales tax?

No. Sales tax is calculated on the exact transaction total before rounding.

Does rounding apply to refunds?

Yes. Cash refunds will use the same rounding rules.

Can I disable cash rounding later?

Yes. The feature can be toggled on or off at any time.

Can I see an example of a printed receipt with cash rounding applied?

Yes, please see the sample below: 

Summary

Cash rounding is a practical response to the penny shortage and helps ensure accurate cash handling, clean GL reconciliation, and compliance with accounting best practices.

By enabling the feature and mapping a dedicated GL account, your operation can confidently accept cash while minimizing discrepancies.

If you have questions or need assistance with setup, please contact Support at [e-mail] or by calling 800-929-5737.