Rounding Enhancements

Overview

A longstanding problem with Lavu has been inconsistencies with taxes and discounts when viewed across multiple reports. These inconsistencies were caused by unrounded tax and discount amounts that were stored in the database. 

In addition, when a user splits a check evenly it causes the POS to round the amount a second time. This means when an order is split evenly, the total cost of the order could be higher than when it was on one check. Each of these issues has been addressed by Lavu in a different way as explained below.

Tax solution

The tax rate will be applied to each item individually and rounded to the closest penny.

Example:

Item-Level Tax
Item 1: $5.51, 9% tax
Item 2: $5.51, 9% tax

Tax on Item 1 = $5.51 x 0.09 = $0.4959
Item’s tax is rounded to $0.50

Tax on Item 2 = $5.51 x 0.09 = $0.4959
Item’s tax is rounded to $0.50

Total tax collected on sale = $1.00

Half-even rounding

When an item has a tax amount that landed exactly on 0.005 (half a cent), the app will round to the nearest even number.

Example:
$0.495 rounds to $0.50.
$0.485 rounds to $0.48.


Splitting logic

If the price of an item or order was split evenly, and it did not divide evenly by the number it was attempted to be split into, the remainder should be distributed to each order or item until there is none remaining.

Example:

$11.00 item is split evenly 3 ways. 11.00 / 3 = 3.666666666.
3.666666666 is rounded to 3.67.
3.67 * 3 = $11.01 which means the trio was overcharged by a penny in this scenario.

Instead of dividing the full amount by 3, and then rounding, we should calculate the item price down to the nearest penny, and then add the remainder to each split until there wasn’t a remainder left.

$11.00 / 3 = $3.66 + $3.66 + $3.66 remainder $0.02. The $0.02 would be distributed a penny at a time to the other $3.66 until none remain. $11.00 / 3 = $3.67 + $3.67 + $3.66. Tax would be treated the same way. Meaning tax would be calculated at an order level instead of being calculated at a check by check level.

Tax included in item price example splitting

Subtotal: $9.32
Tax: $0.68
Total $10.00

Split * 3

Check 1
Subtotal: $3.11
Tax: $0.22
Total: $3.33

Check 2
Subtotal: $3.11
Tax: $0.23
Total: $3.34

Check 3
Subtotal: $3.10
Tax: $0.23
Total: $3.33


Discounts

All discount values will round down and be subtracted from the item’s initial cost to give us the item price. This will be done on a per item basis instead of check level. 

Item 1 $5.99, 50% discount
Discount amount $2.99
Item price after discount ($5.99 - $2.99) $3.00



 

 

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