If any amount remains unaccounted for after computing, TValue refers to it as a Rounding Amount. This amount will be displayed in the Rounding dialog. If no Unknown values exist when the Calculate command is chosen, any remaining balance, positive or negative, will be accounted for in the Rounding dialog.
To calculate and account for the Rounding Amount.
- From the Home ribbon's Compute group, choose Rounding.
Note: A negative Rounding Amount, usually indicating an overpayment, is preceded by a minus (-) sign. - Choose an option and then click OK to adjust the Rounding. Click Cancel to return to the schedule without accounting for the Rounding Amount.
The options in the Rounding dialog allow you to account for any Rounding Amount. (The titles of the options vary per Event; the titles and descriptions below are for a Loan Event and a Deposit Event.)
- Last Payment or Last Withdrawal Applies any Rounding Amount to the last Payment or Withdrawal. If the last Payment is entered as part of a series, it will be placed on a separate cash flow line with the Rounding Amount added to or subtracted from it.
- First Loan or First Deposit Adjusts the first Loan or Deposit Amount to eliminate the Rounding Amount. This option may not entirely eliminate a Rounding Amount since you are adjusting the Event at the beginning of the term. It may create a new Rounding Amount.
- Balloon Creates a new Payment or Withdrawal one period after the last Event. If no period has been established, the Balloon is placed one compounding period after the last Event. The Amount of the Event will equal the Rounding Amount plus any accrued interest for the period.
- Specific Line Adjusts the cash flow line you specify to eliminate the Rounding Amount.
- Open Balance Leaves the Rounding Amount as an open balance on the amortization schedule. This allows you to run an amortization schedule without forcing a zero balance at the end. This is useful when you are recording payments on an ongoing basis or when you need to show the remaining balance of a note. You cannot do APR calculations if you select this option.
Note: If you re-calculate after selecting Open Balance, you will need to choose Open Balance again to keep the remaining balance open. - Ignore (add to last interest amount) Adjusts the ending principal and interest figures in the amortization schedule so that the balance equals zero.