Why we use 4 Decimal Places for calculations. Capitula Portal tracks all monetary values using four decimal (.0000) places to ensure accurate calculations when processing commissions. This is particularly important because our system handles: Processing commission splits between Commissioners, Promoters, and Capitula’s margins.
Here’s why four decimals are essential:
- Percentage-Based Splits: Commission structures often involve percentages allocated to Promoters and Capitula. Using four decimal places minimises rounding errors that can accumulate during calculations, ensuring fair and accurate payouts for all parties involved.
- We understand that financial reporting readability is important. However, in this case, the potential for even minor rounding errors can significantly impact commission payouts. By maintaining four decimal places, Capitula prioritises accurate calculations for a trustworthy and reliable tracking & reporting system.
Addressing Potential Concerns
- Automated Systems: All calculations are performed automatically within the platform, minimising the chance of human error.
- Data Validation: Our system implements data validation checks to ensure accuracy during data entry.
- Reporting Options: Affiliate Partners can choose to view reports with a preferred number of decimal places for better readability by downloading their own Excel report. (It is your responsibility to store this information safely/securely on your chosen device).
Following Best Practices
We remain committed to adhering to established accounting standards and best practices within our industry. Transparency and clear communication are paramount to us.