# Xero - Why is the round off amount so large?

Modified on: Tue, 31 Jan, 2023 at 9:20 PM

Scope

Round off difference in CB and Xero

Solution

While most round-offs are approximately 0.01 and are there to offset the difference in how Chargebee and Xero perform a rounding; sometimes it can be because of how Chargebee has different Pricing Models. (Reference https://www.chargebee.com/docs/2.0/plans.html#pricing-models)

This is best explained with an example.

• If an invoice has a tiered pricing structure where

• 0 to 50 units; the rate is 0.0

• 51 and above; the rate is 0.22

• The invoice has a quantity of 75. Which means,

• The first 50 units are 0.00

• The next 25 units are 25 * 0.22 = 5.50

• Now Xero does not have a tiered pricing structure.

• Instead, Xero has a straight rate * qty.

• When we pass the line item to Xero; we calculate the rate as follows :

• Rate = {Line Amount}/{total quantity}

• I.e. Rate = 5.5/75 = 0.0733333

• I.e. Rate is approximately equal to 0.07

• So when we pass this line item to Xero; it will calculate as follows :

• Rate = 0.07

• Qty = 75

• Amount = Rate * Qty = 75 * 0.07 = 5.25

• Due to the above discrepancy, we send a roundoff to make sure the totals match on both Chargebee and Xero.

• We will not be able to match each individual line item amount or tax amount because of the difference in calculation methodology between Chargebee and Xero.

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