Cash rounding applies to the change due (the amount given back to the guest) from a transaction. You can choose one of three rounding strategies. Rounding always targets the nearest nickel (5 cents) and applies only when the cent value of the change due is 1, 2, 3, 4, 6, 7, 8, or 9 (no rounding occurs when the change is already a whole dollar or ends in .05).
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Always round down (guest's favor): The change given is rounded so the guest receives more change. For example, change due $3.97 becomes $4.00 given back. The cash rounding service charge is negative.
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Always round up (location's favor): The change given is rounded so the guest receives less change. For example, change due $3.97 becomes $3.95 given back; the cash rounding service charge is positive.
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Round to the nearest nickel:
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.01 and .02 round down to .00
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.03 and .04 round up to .05
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.06 and .07 round down to .05
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.08 and .09 round up to .10
For example, change due $3.97 becomes $4.00 (negative charge); change due $3.96 becomes $3.95 (positive charge).
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You can configure your cash rounding strategy in Toast Web at → → .
Because rounding is about the physical cash in your drawer rather than the price of your food, it's handled a bit differently in your reporting.
Cash rounding adjustments aren't included in your net sales. You can think of these as cash drawer adjustments since they don't reflect the value of the services or products you've sold.
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Sales tax: Since rounding isn't a sale, these amounts are excluded from your sales tax reporting.
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Accounting: Cash rounding adjustments are recorded as cash over/short, which is considered non-taxable income or an expense.
Depending on your location's cash rounding strategy, and the total of the check, a rounding adjustment can either be positive or negative.
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Negative amounts (rounded in the guest's favor): If you give a guest $4.00 in change when they were only due $3.97, you've given an extra $0.03. Your report shows a negative amount because your location retained slightly less cash.
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Positive amounts (rounded in the location's favor): If you give a guest $3.95 when they were due $3.96, you've kept an extra $0.01. Your report shows a positive amount because your location retained that extra cent.
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Note |
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When you're reviewing your reports, remember that negative rounding amounts are recorded as losses because they reduce the total cash you kept from those transactions. |