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

Modified on: Thu, 9 Feb, 2023 at 1:32 PM


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

Why the amount in Xero is different from Chargebee?


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.


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,

    • 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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