Rounding differences occur when the allocation of costs, based on the allocation percentage, does not create equally distributed ...

Rounding differences occur when the allocation of costs, based on the allocation percentage, does not create equally distributed amounts. The designated rounding account is always charged the amount of the difference, whether it is positive or negative. For example, if USD 100.00 must be equally divided between three sources, each account is responsible for USD 33.333333, or 33.33 when rounded to a currency of two decimal places. In this case, two of the funders are charged USD 33.33, and the designated rounding funder is charged USD 33.34. Here, the designated funder’s charge is raised to make the total funding equal USD 100.00. If USD 200.00 must be equally divided between three sources, each account is responsible for USD 66.6666, or 66.67 when rounded to a currency of two decimals. In this case, two of the funders are charged USD 66.67, and the designated rounding funder is charged USD 66.66. Here, the designated funder’s charge is lowered to make the total funding equal USD 200.00.