Canadian Penny Rounding

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POSitive, Ready to Round!
 
With POSitive's cash rounding feature, Canadian users are ready to round cash sales when the Royal
Canadian Mint stops distribution of the penny on February 4, 2013.

Similar to Australia, Canada no longer produces a coin equivalent to the US penny.  Cheques and
credit cards can be for any amount, but cash transactions must be rounded.

Rising Costs & Increased Accumulation


In Economic Action Plan 2012, the Canadian government announced it would phase out the penny
from Canada’s coinage system. The decision to phase out the penny was due to its excessive and
rising cost of production relative to face value, the increased accumulation of pennies by Canadians
in their households, environmental considerations, and the significant handling costs the penny
imposes on retailers, financial institutions and the economy in general.  The estimated savings for
Canadian taxpayers from phasing out the penny is $11 million a year.

On February 4, 2013, businesses will be encouraged to begin rounding cash transactions.   

Rounding Guidelines
 
As pennies exit circulation, cash payments or transactions only will need to be rounded, either up or
down, to the nearest five-cent increment.  If the price ends in a one, two, six, or seven it gets rounded
down to 0 or 5; and rounded up if it ends in three, four, eight or nine.  The rounding will not be done
on single items but on the total bill of sale.

Additional Details


If the customer chooses to pay by cheque, credit card or debit card, no rounding is applied.  If the
customer chooses to pay by coins, the payment should not exceed 25 cents if the denomination is one
cent.  For any cash payment, only the final amount (or equivalently, the change owed) should be
subject to rounding. Individual items, as well as any duties, fees or taxes, should be tabulated in their
exact amount prior to rounding. This includes the GST/HST.
 
Activate Cash Rounding

1. Make a backup of POSitive's SQL database
2. Log into POSitive and choose the Maintenance tab
3. Press the System Setup button
4. Switch to the Tax Options view
5. Click the Tax Inclusive tab
6. Activate the Round to Nearest 5 Cents When Cash Tender option
7. Press OK to save this change


 

 For more information about phasing out the Canadian penny, visit http://www.cra-arc.gc.ca/  or call 1-800-O-CANADA

Telephone Numbers

North America Toll Free:
800-735-6860

All Other Locations:
509-371-0600

 

Customer Comments

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Wayne Lecomte
President
Progressive Audio Inc.

 

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