I've seen various solutions to this problem in Java

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Perhaps the most common is to ignore it after all, it's only a penny here and there However this tends to make accountants understandably nervous When allocating you always do the last allocation by subtracting from what you've allocated so far This avoids losing pennies, but you can get a cumulative amount of pennies on the last allocation Allow users of a Money class to declare the rounding scheme when they call the method This permits a programmer to say that the 70% case rounds up and the 30% rounds down Things can get complicated when you allocate across ten accounts instead of two You also have to remember to round To encourage people to remember I've seen some Money classes force a rounding parameter into the multiply operation Not only does this force the programmer to think about what rounding she needs, it also might remind her of the tests to write However, it gets messy if you have a lot of tax calculations that all round the same way My favorite solution: have an allocator function on the money The parameter to the allocator is a list of numbers, representing the ratio to be allocated (it would look something like aMoneyallocate([7,3])) The allocator returns a list of monies, guaranteeing that no pennies get dropped by scattering them across the allocated monies in a way that looks pseudo-random from the outside The allocator has faults: You have to remember to use it and any precise rules about where the pennies go are difficult to enforce
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The fundamental issue here is between using multiplication to determine proportional charge (such as a tax) and using it to allocate a sum of money across multiple places Multiplication works well for the former, but an allocator works better for the latter The important thing is to consider your intent in using multiplication or division on a monetary value
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You may want to convert from one currency to another with a method like aMoneyconvertTo(CurrencyDOLLARS) The obvious way to do this is to look up an exchange rate and multiply by it While this works in many situations, there are cases where it doesn't again due to rounding The conversion rules between the fixed euro currencies had specific roundings applied that made simple multiplication unworkable Thus, it's wise to have a convertor object to encapsulate the algorithm
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Comparison operations allow you to sort monies Like the addition operation, conversions need to be currency aware You can either choose to throw an exception if you compare different currencies or do a conversion
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A Money can encapsulate the printing behavior This makes it much easier to provide good display on user interfaces and reports A Money class can also parse a string to provide a currency-aware input mechanism, which again is very useful for the user interface This is where your platform's libraries can provide help Increasingly platforms provide globalization support with specific number formatters for particular countries
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Storing a Money in a database always raises an issue, since databases also don't seem to understand that money is important (although their vendors do) The obvious route to take is to use Embedded Value (268),
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which results in storing a currency for every money That can be overkill when, for instance, an account may have all its entries be in pounds In this case you may store the currency on the account and alter the database mapping to pull the account's currency whenever you load entries
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I use Money for pretty much all numeric calculation in object-oriented environments The primary reason is to encapsulate the handling of rounding behavior, which helps reduce the problems of rounding errors Another reason to use Money is to make multi-currency work much easier The most common objection to Money is performance, although I've only rarely heard of cases where it makes any noticeable difference, and even then the encapsulation often makes tuning easier
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