Understanding Rounding in Compensation Planning

## Understanding Rounding in Compensation Planning

When working with compensation data across multiple currencies and regions, Pave applies specific rounding rules to ensure accuracy and consistency. This guide explains how and where rounding occurs throughout the compensation planning process.

### Cycle Currency vs. Local Currency

All compensation values are stored in your **cycle currency** (the primary currency you've set for your compensation cycle) on the backend. When employees have different local currencies, values are converted for display purposes.


:::info
**Important:** Currency conversions happen using floating-point arithmetic, which may produce slightly different results than manual calculations. HRIS currency values in local currencies may undergo two conversions: first to cycle currency for storage, then back to local currency for display.

:::


## Where Rounding Occurs

| **Area** | **Rounding Behavior** |
|----|----|
| **Planner Table Currency Values** | Values are stored in cycle currency. Local currency display requires conversion both ways, which may introduce minor discrepancies due to floating-point arithmetic. |
| **Recommendation Values** | When using in-app configurations (e.g., 5% salary increase), values are calculated and stored in cycle currency. |
| **Manual Entry** | When you manually enter values in local currency, they are immediately converted to and stored in cycle currency. |
| **Equity Share Values** | Share values in "Current Equity" and "New Equity Impact" columns are rounded based on your cycle configuration setting: up, down, or to nearest integer. |
| **CSV Downloads** | Currency, number, and percentage columns are generally rounded to 2 decimal places in exported files. |


## Rounding in Smart Flags and Filters

When creating smart flags with filters, rounding precision depends on the column type:

* **Currency columns:** Values are rounded to 2 decimal places for comparisons
* **Number or percentage columns:** Values are rounded to 4 decimal places for comparisons

Example: If an employee's salary raise is $5,839.5202661252 in the backend, it will be compared as $5,839.52 in smart flag filters.

## Rounding in Budgets

Budget amounts and spend totals are stored and displayed in cycle currency only.

**Over Budget Threshold:** A budget is considered over when spend exceeds the total budget by more than $1. This provides a small buffer to account for rounding differences.

## Rounding in Reward Letters

### Eligibility

Currently, reward letter eligibility is determined using unrounded cycle currency values. An employee needs non-zero values in relevant columns to be eligible.


:::info
**Note:** In rare edge cases involving very small values close to zero, this may cause unexpected behavior in eligibility determination.

:::

### Display Values

Currency values in reward letters are rounded by default. The rounding applied in the planner table matches the rounding in the reward letter template editor for consistency.

## Best Practices

* Be aware that currency conversions involve two steps when working with local currencies different from your cycle currency
* When setting up smart flags with currency filters, account for 2 decimal place rounding
* Configure your equity rounding preference (up, down, or nearest) at the cycle level before starting planning
* Review budget totals in cycle currency to understand actual spend vs. allocations
* When exporting data to CSV, remember that displayed values are rounded to 2 decimal places

## Example Scenario

**Cycle Settings:**
• Cycle Currency: USD
• Exchange Rate: 1 USD = 0.85623472 EUR
• Share Price: $10

**Employee: Maya Chang**
• Local Currency: EUR
• Base Pay: €100,000

### Process:


1. Maya's €100,000 base is converted to USD and stored
2. When Maya's planner views her data in EUR, it's converted back
3. Small differences may occur due to floating-point arithmetic
4. Any manual entries in EUR are converted to USD for storage Questions? If you encounter unexpected rounding behavior or have questions about how values are calculated in your specific use case, please contact Pave support for assistance.




Value Rounding in Compensation Planning

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