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What is Malaysia 1 cent Rounding Mechanism? How it Work ?
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After talking to few friends about "Rounding Mechanism" which will effective on 1st April 2008, i found a lots people, even business man do not understand much about how its work! So here to share some simple informations and sample of How Malaysia 1 cent Rounding Mechanism work!
The Rounding Mechanism only applies to the total amount of a bill and not on individual items. In the Rounding Mechanism exercise, the total amount of a bill which ends in 1, 2, 6 and 7 sen will be rounded down while the total bill which ends in 3, 4, 8 and 9 sen will be rounded up to the nearest multiple of 5 sen.
After talking to few friends about "Rounding Mechanism" which will effective on 1st April 2008, i found a lots people, even business man do not understand much about how its work! So here to share some simple informations and sample of How Malaysia 1 cent Rounding Mechanism work!
The Rounding Mechanism only applies to the total amount of a bill and not on individual items. In the Rounding Mechanism exercise, the total amount of a bill which ends in 1, 2, 6 and 7 sen will be rounded down while the total bill which ends in 3, 4, 8 and 9 sen will be rounded up to the nearest multiple of 5 sen.
The table below illustrates how the Rounding Mechanism works:
click on the above image to enalrge
General guidelines of rounding
1. The total amount of a bill (including goods and services subject to tax) that ends in 1, 2, 6 and 7 sen to be rounded downwards and 3, 4, 8 and 9 sen to be rounded upwards to the nearest multiple of 5 sen.
2. Applicable to all payments, be it cash or non-cash.
3. The Rounding Mechanism table must be clearly displayed at the point of sale to ensure customers are appropriately informed.
4. Receipts / bills / invoices should feature the total amount before and after the rounding adjustment.
5. The 1 sen coin shall continue to be legal tender.
See Also:
Frequently Asked Questions (FAQs) on Rounding Mechanism
Information/enquiries
More information can be obtained at Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna's (KPDNHEP) website www.kpdnhep.gov.my or Bank Negara Malaysia's website (www.bnm.gov.my) and via their respective hotlines at 1-800-886-800 and 1-300-88-5465.
Enquiries can also be emailed to 1sen@bnm.gov.my.
What about Jerry's Currency? US Dollar $ 100 .... definitely rounding and not complicated at all @@ hehehe....
1. The total amount of a bill (including goods and services subject to tax) that ends in 1, 2, 6 and 7 sen to be rounded downwards and 3, 4, 8 and 9 sen to be rounded upwards to the nearest multiple of 5 sen.
2. Applicable to all payments, be it cash or non-cash.
3. The Rounding Mechanism table must be clearly displayed at the point of sale to ensure customers are appropriately informed.
4. Receipts / bills / invoices should feature the total amount before and after the rounding adjustment.
5. The 1 sen coin shall continue to be legal tender.
See Also:
Frequently Asked Questions (FAQs) on Rounding Mechanism
Information/enquiries
More information can be obtained at Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna's (KPDNHEP) website www.kpdnhep.gov.my or Bank Negara Malaysia's website (www.bnm.gov.my) and via their respective hotlines at 1-800-886-800 and 1-300-88-5465.
Enquiries can also be emailed to 1sen@bnm.gov.my.
What about Jerry's Currency? US Dollar $ 100 .... definitely rounding and not complicated at all @@ hehehe....
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Hi Jerry,
On the accounting side, how do you expect the rouding up mechanism balance up the account in the books.
e.g If a creditor owes RM147.42
and he pays RM147.40
then the creditor's ledger will show that there is an oustanding amount of RM0.02
Shall we re-programme our computer software to round up the figure? this will cost $$$$$
Ken Lee : Hi, on accounting books i'm not too sure! by logic thinking, you should specific the rounding profit or loss.
You example was talking about a normal retail receipt basis?
Re-program doesn't cost you much, simply add in a rounding minus column, in fact a lot of Point of Sales System company update Free for their client, you should call them up and request a rounding update :) Cheers!
This rounding thingy is making consumer pay more! make those retailer richer & richer!
Let see, promotional items always end with figure of 0.99 and what happened after rounding?
RM0.99 = RM 1.00
If with Government Tax ? worse ...
RM0.99+(RM0.99*5%) = RM1.03
After rounding = RM1.05
How u calculate also we lose!
Most items are priced ending in 95, 98 and 99. It is quite common to buy a single item and in this case the store will make an extra RM0.01 or RM0.02. I wonder how long it will be until we see prices ending in 96 to maximize a store's rounding profit? This would amount to a 4.1% increase in profit per RM0.96 item (rounded to RM1).