Price Rounding Methods

Use Price Rounding Methods to round sale prices to convenient numbers, or to convert them to "retail" pricing like $9.95.

HINT-- Rounding methods are a part of the Goldenseal point of sale software. They calculate final sale prices for each item that you sell (or each service you provide).

Price ROUNDING METHOD BASICS
       Entering Price Rounding Methods | Data Fields | Rounding Table
       Rounding Types | Rounding Calculations | Trim Calculations
       Using Lists | Using Price Rounding Methods

WEBSITE INFO LINKS
       Accounting Software | Point of Sale Software | Unit Cost Software

RELATED TOPICS
       Assemblies | Cost Items | Item Discounts | Markups | Unit Cost Setup

Entering Price Rounding Methods

To enter a Price Rounding Method, follow these steps:

  1. Choose Income Setup from the Income menu, then choose Price Rounding from the submenu.
  2. Click the New button, or click on an existing item and click the Edit button.
  3. Enter details for the rounding method.

Data Fields

Enter the following information for each Price Rounding Method:
Name-- Type in a brief name for this rounding method. This is the text that will appear in clairvoyant fields.
Description-- Type in any comments you'd like to make about this item.
Rounding Table-- Enter the rounding calculation method for each dollar range (see the next section).

Rounding Table

The rounding table allows you to use different rounding calculations for different price ranges.

EXAMPLE-- You may want costs under $3 to be rounded to the nearest dime, costs between $3 and $30 to be rounded to the nearest dollar, and higher costs rounded to the nearest ten dollars.

You can enter any number of price ranges. Price ranges must be entered in ascending order (you won't be allowed to do otherwise).

NOTE-- Quantities that are exactly at the limit between two ranges are rounded by the first method in the list.

To enter price ranges that get different rounding methods, follow these steps:

  1. Click in the ăup to┴ column in the first row, and enter the first amount at which the rounding method changes.
  2. Enter the rounding method used for that range of items.
  3. Click in the ăup to┴ column in the next row, and enter the next amount at which the method changes.
  4. Enter the rounding method for that range.
  5. Repeat steps 3 and 4 for each additional step.
  6. When you have reached the final step, enter the rounding method used for prices that are above the highest limit.

Rounding Types

For each range of prices, you can choose a different rounding or trim method.

When you choose to round prices, Goldenseal adjusts them to the nearest multiple of the amount you enter in the value box at the right.  For example, if you round up to the nearest .25, all costs will end in the next higher value ending in .25, .50, .75 or .00.

When you choose to trim prices, Goldenseal adjusts them to a ăretail┴ price.  For example, if you trim up to the nearest .25, values will end with the next highest even ten cents ending in .05 (.05, .25, .45, .65, or .85).

NOTE-- If you don't understand the explanations of the trimmed results, try some different trim values, and see how the calculated costs turn out.

Use any of the following rounding methods:

Round to Nearest-- Rounds the cost to the closest multiple of the value.
Round Up to Nearest--  Rounds the cost to the next higher multiple of the value.
Round Down to Nearest-- Rounds the cost to the next lower multiple of the value.

Trim to Nearest-- Trims the cost to a 'retail' amount determined by the trim value.
Trim Up to Nearest--  Trims the cost to the next higher 'retail' amount determined by the trim value.
Trim Down to Nearest--  Trims the cost to the next lower 'retail' amount determined by the trim value.

Fractional Pennies-- No price rounding-- the cost will be to the nearest 1/100 penny.
NOTE-- It only makes sense to use Fractional Pennies for assembly components, or for very inexpensive items that are sold in large quantities.
Fixed Digits-- Replace the entered digits in the value with the digits in the rounding method.
EXAMPLE-- If you enter $.95 into the rounding method table, then $.33 or $.99 will be rounded to $.95, and $12.27 will be rounded to $12.95.
Fixed Value-- Rounds all amounts to a fixed dollar amount, no matter what the original value.
NOTE-- The Fixed Value option only makes sense for a narrow range of values.  For example, you can use it for very inexpensive items, if you never sell them for less than a minimum amount.

Rounding Calculations

When you choose Round to Nearest, Round Up to Nearest, or Round Down to Nearest, Goldenseal calculates the net price by rounding values to the nearest multiple of the value in the box at right.
EXAMPLE-- If you choose Round Up To Nearest and enter .05 for the rounding interval, a cost of .22 will become .25, .27 will become .30, 2.44 will become 2.45, and 174.56 will become 174.60.

The following quantities are commonly used for rounding:

  • .01-- round to the nearest penny.
  • .02-- round to the nearest even penny.
  • .05-- round to the nearest nickel.
  • .10-- round to the nearest ten cents.
  • .25-- round to the nearest quarter.
  • .33-- round to .33, .66 or .99.
  • .50-- round to the nearest fifty cents.
  • 1.00-- round to the nearest dollar.
  • 2.00-- round to the nearest even dollar.
  • 5.00-- round to the nearest five dollars.
  • 10.00-- round to the nearest ten dollars.
  • 100.00-- round to the nearest hundred dollars.

You can use other rounding intervals, but they will produce odd values that probably won't be useful for pricing.

NOTE-- Rounded amounts are always in exact pennies.

Trim Calculations

When you choose Trim to Nearest, Trim Up to Nearest or Trim Down to Nearest, Goldenseal calculates 'retail' prices, based on the value in the box at right.

EXAMPLE-- If you trim to .09, prices will end with .09, .19, .29, .39, and up to .99.  If you trim to .95, prices will be .95, 1.95, 2.95, 3.95 and so on.

When you trim to a number, each digit is treated individually.

Here is the way price trimming works, for values less than a dollar:

  •  .00 to .09-- the last digit will be the same as the penny amount entered.
  •  .10 to .19-- the dime amount will be an odd number, and the last digit will be the same as the penny amount entered.
  •  .20 to .29-- the dime amount will be an even number, and the last digit will be the same as the penny amount entered.
  •  .30 to .39-- the dime amount will be 3, 6 or 9, and the last digit will be the same as the penny amount entered.
  •  .40 to .49-- the dime amount will be 4 or 9, and the last digit will be the same as the penny amount entered.
  •  .50 to .99-- the penny digits will always be the same as the amount entered.

Here's the way trimmed prices work for values of one dollar or more:

  • 1.00 to 1.99-- the dollar digit will be an odd number, and the penny digits will be the same as the amount entered.
  • 2.00 to 2.99-- the dollar digit will be an even number, and the penny digits will be the same as the amount entered.
  •  3.00 to 3.99-- the dollar digit will be 3, 6 or 9, and the penny digits will be the same as the amount entered.
  •  4.00 to 4.99-- the dollar digit will be 4 or 9, and the penny digits will be the same as the amount entered.
  •  6.00 to 9.99-- the dollar digit and penny digits will be the same as the amount entered.
  •  10.00 to 99.99-- Similar to the 1.00 to 9.99 figures, but only the ten-dollar digit will be adjusted.  The dollar and penny digits will be the same as the amount entered.
  •  100.00 to 999.99--  Similar to the 1.00 to 9.99 figures, but only the hundred-dollar digit will be adjusted.  The ten-dollar, dollar and penny digits will be the same as the amount entered.

NOTE-- Trimmed amounts are always in exact pennies.

Using Price Rounding Methods

To use a Price Rounding Method, enter it into a Markup System, and then use the Markup System in the Markup field of Cost Items and Assemblies.

NOTE-- The Markup System calculates the approximate markup, and then the Price Rounding Method converts it to a "retail" price.