When to use decimals or doubles - sql

Quick Aside: I'm going to use the word "Float" to refer to both a .Net float and a SQL float with only 7 significant digits. I will use the word "Double" to refer to a .Net double and a SQL float with 15 significant digits. I also realize that this is very similar to some other posts regarding decimals/doubles, but the answers on those posts are really inconsistent, and I really want some recommendations for my specific circumstance...
I am part of a team that is rewriting an old application. The original app used floats (7 digits). This of course caused issues since the app conducted a lot of calculations and rounding errors accumulated very quickly. At some point, many of these floats were changed to decimals. Later, the floats (7) in the database all became doubles (15). After that we had several more errors with calculations involving doubles, and they too were changed to decimals.
Today about 1/3 of all of our floating point numbers in the database are decimals, the rest are doubles. My team wants to "standardize" all of our floating-point numbers in the database (and the new .Net code) to use either exclusively decimals or doubles except in cases where the other MUST be used. The majority of the team is set on using decimals; I'm the only person on my team advocating using doubles instead of decimals. Here's why...
Most of the numbers in the database are still doubles (though much of the application code still uses floats), and it would be a lot more effort to change all of the floats/doubles to decimals
For our app, none of the fields stored are "exact" decimal quantities. None of them are monetary quantities, and most represent some sort of "natural" measurement (e.g. mass, length, volume, etc.), so a double's 16 significant digits are already way more precise than even our initial measurements.
Many tables have measurements stored in two columns: 1 for the value; 1 for the unit of measure. This can lead to a HUGE difference in scale between the values in a single column. For example, one column can store a value in terms of pCi/g or Ci/m3 (1 Ci = 1000000000000 pCi). Since all the values in a single decimal columns must have the same scale (that is... an allocated number of digits both before and after the decimal point), I'm concerned that we will have overflow and rounding issues.
My teammates argue that:
Doubles are not as accurate nor as precise as decimals due to their inability to exactly represent 1/10 and that they only have 16 significant digits.
Even though we are not tracking money, the app is a inventory system that keeps track of material (mostly gram quantities) and it needs to be "as accurate as possible".
Even after the floats were changed to doubles, we continued to have bad results from calculations that used doubles. Changing these columns (and the application code) to decimals caused these calculations to produce the expected results.
It is my strong belief that the original issues where caused due to floats only having 7 significant digits and that simple arithmetic (e.g. 10001 * 10001) caused them to the data to quickly use up the few significant digits that they had. I do not believe this had anything to do with how binary-floating point numbers can only approximate decimal values, and I believe that using doubles would have fixed this issue.
I believe that the issue with doubles arose because doubles were used along side decimals in calculations that values were be converted back and forth between data types. Many of these calculations would round between intermediary steps in the calculation!
I'm trying to convince my team not to make everything under the sun into a decimal. Most values in the database don't have more than 5 or 6 significant digits anyway. Unfortunately, I am out-ranked by other members of my team that see things rather differently.
So, my question then is...
Am I worrying over nothing? Is there any real harm done by using almost exclusively decimals instead of doubles in an application with nearly 200 database tables, hundreds of transactions, and a rewrite schedule of 5 to 6 years?
Is using decimals actually solving an issue that doubles could not? From my research, both decimals and doubles are susceptible to rounding errors involving arbitrary fractions (adding 1/3 for example) and that the only way to account for this is to consider any value within a certain tolerance as being "equal" when comparing doubles and/or decimals.
If it is more appropriate to use doubles, what arguments could I make (other than what I have already made) could convince my team to not change everything to decimals?

Use decimal when you need perfect accuracy as a base-10 number (financial data, grades)
Use double or float when you are storing naturally imprecise data (measurements, temperature), want much faster mathematical operations, and can sacrifice a minute amount of imprecision.
Since you seem to be only storing various measurements (which have some precision anyways), float would be the logical choice (or double if you need more than 7 digits of precision).
Is using decimals actually solving an issue that doubles could not?
Not really - The data is only going to be as accurate as the measurements used to generate the data. Can you really say that a measured quantity is 123.4567 grams? Does the equipment used to measure it have that level of precision?
To deal with "rounding errors" I would argue that you can't really say whether a measurement of 1234.5 grams is exactly halfway - it could just as easily be 1234.49 grams, which would round down anyways.
What you need to decide is "what level of precision is acceptable" and always round to that precision as a last step. Don't round your data or intermediate calculations.
If it is more appropriate to use doubles, what arguments could I make (other than what I have already made) could convince my team to not change everything to decimals?
Other than the time spent switching, the only thing you're really sacrificing is speed. The only way to know how much speed is to try it both ways and measure the difference.

You'd better try your best not to lose precision. I guess my fault may convince you to choose double.
===> I did some wrong arithmetic, and it returns something very weird:
given 0.60, it returns 5
int get_index(double value) {
if (value < 0 || value > 1.00)
return -1;
return value / 0.10;
}
and I fixed it:
int get_index(double value) {
if (value < 0 || value > 1.00)
return -1;
return (value * 100000000) / (0.10 * 100000000);
}

Related

Objective C Multiplication of floats gives unexpected results

I'm literately just doing a multiplication of two floats. How come these statements produce different results ? Should I even be using floats ?
500,000.00 * 0.001660 = 830
How come these statements produce different results ?
Because floating-point arithmetic is not exact and apparently you were not printing the multiplier precisely enough (i. e. with sufficient number of decimal digits). And it wasn't .00166 but something that seemed 0.00166 rounded.
Should I even be using floats ?
No. For money, use integers and treat them as fixed-point rational numbers. (They still aren't exact, but significantly better and less error-prone.)
You didn't show how you initialized periodicInterest, and presumably you think you set it to 0.00166, but in fact the error in your output is large enough that you must not have explicitly initialized it as periodicInterest = 0.00166. It must be closer to 0.00165975, and the difference between 0.00166 and 0.00165975 is definitely large enough not to just be a single floating-point rounding error.
Assuming you are working with monetary quantities, you should use NSDecimalNumber or NSDecimal.
One non-obvious benefit of using NSDecimalNumber is that it works with NSNumberFormatter, so you can let Apple take care of formatting currencies for all sorts of foreign locales.
UPDATE
In response to the comments:
“periodicInterest is clearly not a monetary quantity” and “decimal is no more free of error when dividing by 12 than binary is” - for inexact quantities, I can think of two concerns:
One concern is using sufficient precision to give accurate results. NSDecimalNumber is a floating-point number with 38 digits of precision and an exponent in the range -128…127. This is more than twice the number of decimal digits an IEEE 'double' can store. The exponent range is less than that of a double, but that's unlikely to matter in financial computing. So NSDecimalNumbers can definitely result in smaller error than floats or doubles, even though none of them can store 1/12 exactly.
The other concern is matching the results computed by some other system, like your bank or your broker or the NYSE. In that case, you need to figure out how that other system is storing numbers and computing with them. If the other system is using a decimal format (which is likely in the financial sector), then NSDecimalNumber will probably be useful.
“Wouldn't it be more efficient to use primitive types to do floating point arithmetic, specially thousands in real time.” Arithmetic on primitive types is far faster than arithmetic on NSDecimalNumbers. I haven't measured it, but a factor of 100 would not surprise me.
You have to strike a balance between your requirements. If decimal accuracy is paramount (as it often is in financial programming), you must sacrifice performance for accuracy. If decimal accuracy is not so important, you can consider carefully using a primitive type, but you should be aware of the accuracy you're sacrificing. Even then, the size of a float is so small (usually only 7 significant decimal digits) that you should probably be using double (at least 15, usually 16 significant decimal digits).
If you need to perform millions of arithmetic operations per second with true decimal accuracy, you might be able to do it using doubles, if you are an IEEE 754 expert capable of analyzing your code to figure out where errors are introduced and how to eliminate them. Few people have this level of expertise. (I don't claim to.) You must also understand how your compiler turns your Objective-C code into machine instructions.
Anyway, perhaps you are just writing a casual app to compute a rough estimate of net present value or future value. In that case, using double would probably suffice, but using NSDecimalNumber would probably also be sufficiently fast. Without knowing more about the app you're writing, I can't give you more specific advice.

Which datatype should be used for currency?

Seems like Money type is discouraged as described here.
My application needs to store currency, which datatype shall I be using? Numeric, Money or FLOAT?
Your source is in no way official. It dates to 2011 and I don't even recognize the authors. If the money type was officially "discouraged" PostgreSQL would say so in the manual - which it doesn't.
For a more official source, read this thread in pgsql-general (from just this week!), with statements from core developers including D'Arcy J.M. Cain (original author of the money type) and Tom Lane:
Related answer (and comments!) about improvements in recent releases:
Jasper Report: unable to get value for field 'x' of class 'org.postgresql.util.PGmoney'
Basically, money has its (very limited) uses. The Postgres Wiki suggests to largely avoid it, except for those narrowly defined cases. The advantage over numeric is performance.
decimal is just an alias for numeric in Postgres, and widely used for monetary data, being an "arbitrary precision" type. The manual:
The type numeric can store numbers with a very large number of digits.
It is especially recommended for storing monetary amounts and other
quantities where exactness is required.
Personally, I like to store currency as integer representing Cents if fractional Cents never occur (basically where money makes sense). That's more efficient than any other of the mentioned options.
Numeric with forced 2 units precision. Never use float or float like datatype to represent currency because if you do, people are going to be unhappy when the financial report's bottom line figure is incorrect by + or - a few dollars.
The money type is just left in for historical reasons as far as I can tell.
Take this as an example: 1 Iranian Rial equals 0.000030 United States Dollars. If you use fewer than 5 fractional digits then 1 IRR will be rounded to 0 USD after conversion. I know we're splitting rials here, but I think that when dealing with money you can never be too safe.
Your choices are:
bigint : store the amount in cents. This is what EFTPOS transactions use.
decimal(12,2) : store the amount with exactly two decimal places. This what most general ledger software uses.
float : terrible idea - inadequate accuracy. This is what naive developers use.
Option 2 is the most common and easiest to work with. Make the precision (12 in my example, meaning 12 digits in all) as large or small as works best for you.
Note that if you are aggregating multiple transactions that were the result of a calculation (eg involving an exchange rate) into a single value that has business meaning, the precision should be higher to provide a accurate macro value; consider using something like decimal(18, 8) so the sum is accurate and the individual values can be rounded to cent precision for display.
Use a 64-bit integer stored as bigint
Store in the small currency unit (cents) or use a big multiplier to create larger integers if cents are not granular enough. I recommend something like micro-dollars where dollars are divided by 1 million.
For example: $5,123.56 can be stored as 5123560000 microdollars.
Simple to use and compatible with every language.
Enough precision to handle fractions of a cent.
Works for very small per-unit pricing (like ad impressions or API charges).
Smaller data size for storage than strings or numerics.
Easy to maintain accuracy through calculations and apply rounding at the final output.
I keep all of my monetary fields as:
numeric(15,6)
It seems excessive to have that many decimal places, but if there's even the slightest chance you will have to deal with multiple currencies you'll need that much precision for converting. No matter what I'm presenting a user, I always store to US Dollar. In that way I can readily convert to any other currency, given the conversion rate for the day involved.
If you never do anything but one currency, the worst thing here is that you wasted a bit of space to store some zeroes.
Use BigInt to store currency as a positive integer representing the monetary value in the smallest currency unit (e.g., 100 cents to store $1.00 or 100 to store ¥100 (Japanese yen, a zero-decimal currency). This is what Stripe does--one the most important financial service companies for global ecommerce.
Source: see "Zero-decimal currencies" at https://stripe.com/docs/currencies
This is not a direct answer, but an example of why float is not the best data type for currency.
Because of the way floating point is represented internally, it is more susceptible to round off errors.
In our own decimal system, you’ll get round off errors whenever you divide by anything other than 2 or 5, which are the factors of 10. In binary, it’s only 2 and not 5, so even “clean” decimals, such as 0.2 (1/5) are at risk.
You can see this if you try the following:
select
0.1::float + 0.2::float as floats, -- 0.30000000000000004
0.1::numeric + 0.2::numeric as numerics --- 0.3
;
That’s the sort of thing that drives auditors round the bend.
My personal recommendation is decimal with the precision according to your needs. Decimal with precision = 0 can be the option if you want to store the integer number of currency minor units (e.g. cents) and you have troubles handling decimals in your programming language.
To find out the needed precision you need to consider the following:
Types of currencies you support (they can have different number of decimals). Cryptocurrencies have up to 18 decimals (ETH). The number of decimals can change over time due to inflation.
Storing prices of small units of goods (probably as a result of conversion from another currency) or having accumulators (accumulate 10% fee from 1 cent transactions until the sum reaches 1 cent) can require using more decimals than are defined for a currency
Storing integer number of minimal units can lead to the need of rescaling values in the future if you need to change the precision. If you use decimals, it's much easier.
Note, that you also need to find the corresponding data type in the programming language you use.
More details and caveats in the article.

precision gains where data move from one table to another in sql server

There are three tables in our sql server 2008
transact_orders
transact_shipments
transact_child_orders.
Three of them have a common column carrying_cost. Data type is same in all the three tables.It is float with NUMERIC_PRECISION 53 and NUMERIC_PRECISION_RADIX 2.
In table 1 - transact_orders this column has value 5.1 for three rows. convert(decimal(20,15), carrying_cost) returns 5.100000..... here.
Table 2 - transact_shipments three rows are fetching carrying_cost from those three rows in transact_orders.
convert(decimal(20,15), carrying_cost) returns 5.100000..... here also.
Table 3 - transact_child_orders is summing up those three carrying costs from transact_shipments. And the value shown there is 15.3 when I run a normal select.
But convert(decimal(20,15), carrying_cost) returns 15.299999999999999 in this stable. And its showing that precision gained value in ui also. Though ui is only fetching the value, not doing any conversion. In the java code the variable which is fetching the value from the db is defined as double.
The code in step 3, to sum up the three carrying_costs is simple ::
...sum(isnull(transact_shipments.carrying_costs,0)) sum_carrying_costs,...
Any idea why this change occurs in the third step ? Any help will be appreciated. Please let me know if any more information is needed.
Rather than post a bunch of comments, I'll write an answer.
Floats are not suitable for precise values where you can't accept rounding errors - For example, finance.
Floats can scale from very small numbers, to very high numbers. But they don't do that without losing a degree of accuracy. You can look the details up on line, there is a host of good work out there for you to read.
But, simplistically, it's because they're true binary numbers - some decimal numbers just can't be represented as a binary value with 100% accuracy. (Just like 1/3 can't be represented with 100% accuracy in decimal.)
I'm not sure what is causing your performance issue with the DECIMAL data type, often it's because there is some implicit conversion going on. (You've got a float somewhere, or decimals with different definitions, etc.)
But regardless of the cause; nothing is faster than integer arithmetic. So, store your values are integers? £1.10 could be stored as 110p. Or, if you know you'll get some fractions of a pence for some reason, 11000dp (deci-pennies).
You do then need to consider the biggest value you will ever reach, and whether INT or BIGINT is more appropriate.
Also, when working with integers, be careful of divisions. If you divide £10 between 3 people, where does the last 1p need to go? £3.33 for two people and £3.34 for one person? £0.01 eaten by the bank? But, invariably, it should not get lost to the digital elves.
And, obviously, when presenting the number to a user, you then need to manipulate it back to £ rather than dp; but you need to do that often anyway, to get £10k or £10M, etc.
Whatever you do, and if you don't want rounding errors due to floating point values, don't use FLOAT.
(There is ALOT written on line about how to use floats, and more importantly, how not to. It's a big topic; just don't fall into the trap of "it's so accurate, it's amazing, it can do anything" - I can't count the number of time people have screwed up data using that unfortunately common but naive assumption.)

Why see -0,000000000000001 in access query?

I have an sql:
SELECT Sum(Field1), Sum(Field2), Sum(Field1)+Sum(Field2)
FROM Table
GROUP BY DateField
HAVING Sum(Field1)+Sum(Field2)<>0;
Problem is sometimes Sum of field1 and field2 is value like: 9.5-10.3 and the result is -0,800000000000001. Could anybody explain why this happens and how to solve it?
Problem is sometimes Sum of field1 and
field2 is value like: 9.5-10.3 and the
result is -0.800000000000001. Could
anybody explain why this happens and
how to solve it?
Why this happens
The float and double types store numbers in base 2, not in base 10. Sometimes, a number can be exactly represented in a finite number of bits.
9.5 → 1001.1
And sometimes it can't.
10.3 → 1010.0 1001 1001 1001 1001 1001 1001 1001 1001...
In the latter case, the number will get rounded to the closest value that can be represented as a double:
1010.0100110011001100110011001100110011001100110011010 base 2
= 10.300000000000000710542735760100185871124267578125 base 10
When the subtraction is done in binary, you get:
-0.11001100110011001100110011001100110011001100110100000
= -0.800000000000000710542735760100185871124267578125
Output routines will usually hide most of the "noise" digits.
Python 3.1 rounds it to -0.8000000000000007
SQLite 3.6 rounds it to -0.800000000000001.
printf %g rounds it to -0.8.
Note that, even on systems that display the value as -0.8, it's not the same as the best double approximation of -0.8, which is:
- 0.11001100110011001100110011001100110011001100110011010
= -0.8000000000000000444089209850062616169452667236328125
So, in any programming language using double, the expression 9.5 - 10.3 == -0.8 will be false.
The decimal non-solution
With questions like these, the most common answer is "use decimal arithmetic". This does indeed get better output in this particular example. Using Python's decimal.Decimal class:
>>> Decimal('9.5') - Decimal('10.3')
Decimal('-0.8')
However, you'll still have to deal with
>>> Decimal(1) / 3 * 3
Decimal('0.9999999999999999999999999999')
>>> Decimal(2).sqrt() ** 2
Decimal('1.999999999999999999999999999')
These may be more familiar rounding errors than the ones binary numbers have, but that doesn't make them less important.
In fact, binary fractions are more accurate than decimal fractions with the same number of bits, because of a combination of:
The hidden bit unique to base 2, and
The suboptimal radix economy of decimal.
It's also much faster (on PCs) because it has dedicated hardware.
There is nothing special about base ten. It's just an arbitrary choice based on the number of fingers we have.
It would be just as accurate to say that a newborn baby weighs 0x7.5 lb (in more familiar terms, 7 lb 5 oz) as to say that it weighs 7.3 lb. (Yes, there's a 0.2 oz difference between the two, but it's within tolerance.) In general, decimal provides no advantage in representing physical measurements.
Money is different
Unlike physical quantities which are measured to a certain level of precision, money is counted and thus an exact quantity. The quirk is that it's counted in multiples of 0.01 instead of multiples of 1 like most other discrete quantities.
If your "10.3" really means $10.30, then you should use a decimal number type to represent the value exactly.
(Unless you're working with historical stock prices from the days when they were in 1/16ths of a dollar, in which case binary is adequate anyway ;-) )
Otherwise, it's just a display issue.
You got an answer correct to 15 significant digits. That's correct for all practical purposes. If you just want to hide the "noise", use the SQL ROUND function.
I'm certain it is because the float data type (aka Double or Single in MS Access) is inexact. It is not like decimal which is a simple value scaled by a power of 10. If I'm remembering correctly, float values can have different denominators which means that they don't always convert back to base 10 exactly.
The cure is to change Field1 and Field2 from float/single/double to decimal or currency. If you give examples of the smallest and largest values you need to store, including the smallest and largest fractions needed such as 0.0001 or 0.9999, we can possibly advise you better.
Be aware that versions of Access before 2007 can have problems with ORDER BY on decimal values. Please read the comments on this post for some more perspective on this. In many cases, this would not be an issue for people, but in other cases it might be.
In general, float should be used for values that can end up being extremely small or large (smaller or larger than a decimal can hold). You need to understand that float maintains more accurate scale at the cost of some precision. That is, a decimal will overflow or underflow where a float can just keep on going. But the float only has a limited number of significant digits, whereas a decimal's digits are all significant.
If you can't change the column types, then in the meantime you can work around the problem by rounding your final calculation. Don't round until the very last possible moment.
Update
A criticism of my recommendation to use decimal has been leveled, not the point about unexpected ORDER BY results, but that float is overall more accurate with the same number of bits.
No contest to this fact. However, I think it is more common for people to be working with values that are in fact counted or are expected to be expressed in base ten. I see questions over and over in forums about what's wrong with their floating-point data types, and I don't see these same questions about decimal. That means to me that people should start off with decimal, and when they're ready for the leap to how and when to use float they can study up on it and start using it when they're competent.
In the meantime, while it may be a tad frustrating to have people always recommending decimal when you know it's not as accurate, don't let yourself get divorced from the real world where having more familiar rounding errors at the expense of very slightly reduced accuracy is of value.
Let me point out to my detractors that the example
Decimal(1) / 3 * 3 yielding 1.999999999999999999999999999
is, in what should be familiar words, "correct to 27 significant digits" which is "correct for all practical purposes."
So if we have two ways of doing what is practically speaking the same thing, and both of them can represent numbers very precisely out to a ludicrous number of significant digits, and both require rounding but one of them has markedly more familiar rounding errors than the other, I can't accept that recommending the more familiar one is in any way bad. What is a beginner to make of a system that can perform a - a and not get 0 as an answer? He's going to get confusion, and be stopped in his work while he tries to fathom it. Then he'll go ask for help on a message board, and get told the pat answer "use decimal". Then he'll be just fine for five more years, until he has grown enough to get curious one day and finally studies and really grasps what float is doing and becomes able to use it properly.
That said, in the final analysis I have to say that slamming me for recommending decimal seems just a little bit off in outer space.
Last, I would like to point out that the following statement is not strictly true, since it overgeneralizes:
The float and double types store numbers in base 2, not in base 10.
To be accurate, most modern systems store floating-point data types with a base of 2. But not all! Some use or have used base 10. For all I know, there are systems which use base 3 which is closer to e and thus has a more optimal radix economy than base 2 representations (as if that really mattered to 99.999% of all computer users). Additionally, saying "float and double types" could be a little misleading, since double IS float, but float isn't double. Float is short for floating-point, but Single and Double are float(ing point) subtypes which connote the total precision available. There are also the Single-Extended and Double-Extended floating point data types.
It is probably an effect of floating point number implementations. Sometimes numbers cannot be exactly represented, and sometimes the result of operations is slightly off what we may expect for the same reason.
The fix would be to use a rounding function on the values to cut off the extraneous digits. Like this (I've simply rounded to 4 significant digits after the decimal, but of course you should use whatever precision is appropriate for your data):
SELECT Sum(Field1), Sum(Field2), Round(Sum(Field1)+Sum(Field2), 4)
FROM Table
GROUP BY DateField
HAVING Round(Sum(Field1)+Sum(Field2), 4)<>0;

Storing money in a decimal column - what precision and scale?

I'm using a decimal column to store money values on a database, and today I was wondering what precision and scale to use.
Since supposedly char columns of a fixed width are more efficient, I was thinking the same could be true for decimal columns. Is it?
And what precision and scale should I use? I was thinking precision 24/8. Is that overkill, not enough or ok?
This is what I've decided to do:
Store the conversion rates (when applicable) in the transaction table itself, as a float
Store the currency in the account table
The transaction amount will be a DECIMAL(19,4)
All calculations using a conversion rate will be handled by my application so I keep control of rounding issues
I don't think a float for the conversion rate is an issue, since it's mostly for reference, and I'll be casting it to a decimal anyway.
Thank you all for your valuable input.
If you are looking for a one-size-fits-all, I'd suggest DECIMAL(19, 4) is a popular choice (a quick Google bears this out). I think this originates from the old VBA/Access/Jet Currency data type, being the first fixed point decimal type in the language; Decimal only came in 'version 1.0' style (i.e. not fully implemented) in VB6/VBA6/Jet 4.0.
The rule of thumb for storage of fixed point decimal values is to store at least one more decimal place than you actually require to allow for rounding. One of the reasons for mapping the old Currency type in the front end to DECIMAL(19, 4) type in the back end was that Currency exhibited bankers' rounding by nature, whereas DECIMAL(p, s) rounded by truncation.
An extra decimal place in storage for DECIMAL allows a custom rounding algorithm to be implemented rather than taking the vendor's default (and bankers' rounding is alarming, to say the least, for a designer expecting all values ending in .5 to round away from zero).
Yes, DECIMAL(24, 8) sounds like overkill to me. Most currencies are quoted to four or five decimal places. I know of situations where a decimal scale of 8 (or more) is required but this is where a 'normal' monetary amount (say four decimal places) has been pro rata'd, implying the decimal precision should be reduced accordingly (also consider a floating point type in such circumstances). And no one has that much money nowadays to require a decimal precision of 24 :)
However, rather than a one-size-fits-all approach, some research may be in order. Ask your designer or domain expert about accounting rules which may be applicable: GAAP, EU, etc. I vaguely recall some EU intra-state transfers with explicit rules for rounding to five decimal places, therefore using DECIMAL(p, 6) for storage. Accountants generally seem to favour four decimal places.
PS Avoid SQL Server's MONEY data type because it has serious issues with accuracy when rounding, among other considerations such as portability etc. See Aaron Bertrand's blog.
Microsoft and language designers chose banker's rounding because hardware designers chose it [citation?]. It is enshrined in the Institute of Electrical and Electronics Engineers (IEEE) standards, for example. And hardware designers chose it because mathematicians prefer it. See Wikipedia; to paraphrase: The 1906 edition of Probability and Theory of Errors called this 'the computer's rule' ("computers" meaning humans who perform computations).
We recently implemented a system that needs to handle values in multiple currencies and convert between them, and figured out a few things the hard way.
NEVER USE FLOATING POINT NUMBERS FOR MONEY
Floating point arithmetic introduces inaccuracies that may not be noticed until they've screwed something up. All values should be stored as either integers or fixed-decimal types, and if you choose to use a fixed-decimal type then make sure you understand exactly what that type does under the hood (ie, does it internally use an integer or floating point type).
When you do need to do calculations or conversions:
Convert values to floating point
Calculate new value
Round the number and convert it back to an integer
When converting a floating point number back to an integer in step 3, don't just cast it - use a math function to round it first. This will usually be round, though in special cases it could be floor or ceil. Know the difference and choose carefully.
Store the type of a number alongside the value
This may not be as important for you if you're only handling one currency, but it was important for us in handling multiple currencies. We used the 3-character code for a currency, such as USD, GBP, JPY, EUR, etc.
Depending on the situation, it may also be helpful to store:
Whether the number is before or after tax (and what the tax rate was)
Whether the number is the result of a conversion (and what it was converted from)
Know the accuracy bounds of the numbers you're dealing with
For real values, you want to be as precise as the smallest unit of the currency. This means you have no values smaller than a cent, a penny, a yen, a fen, etc. Don't store values with higher accuracy than that for no reason.
Internally, you may choose to deal with smaller values, in which case that's a different type of currency value. Make sure your code knows which is which and doesn't get them mixed up. Avoid using floating point values even here.
Adding all those rules together, we decided on the following rules. In running code, currencies are stored using an integer for the smallest unit.
class Currency {
String code; // eg "USD"
int value; // eg 2500
boolean converted;
}
class Price {
Currency grossValue;
Currency netValue;
Tax taxRate;
}
In the database, the values are stored as a string in the following format:
USD:2500
That stores the value of $25.00. We were able to do that only because the code that deals with currencies doesn't need to be within the database layer itself, so all values can be converted into memory first. Other situations will no doubt lend themselves to other solutions.
And in case I didn't make it clear earlier, don't use float!
When handling money in MySQL, use DECIMAL(13,2) if you know the precision of your money values or use DOUBLE if you just want a quick good-enough approximate value.
So if your application needs to handle money values up to a trillion dollars (or euros or pounds), then this should work:
DECIMAL(13, 2)
Or, if you need to comply with GAAP then use:
DECIMAL(13, 4)
The money datatype on SQL Server has four digits after the decimal.
From SQL Server 2000 Books Online:
Monetary data represents positive or negative amounts of money. In Microsoft® SQL Server™ 2000, monetary data is stored using the money and smallmoney data types. Monetary data can be stored to an accuracy of four decimal places. Use the money data type to store values in the range from -922,337,203,685,477.5808 through +922,337,203,685,477.5807 (requires 8 bytes to store a value). Use the smallmoney data type to store values in the range from -214,748.3648 through 214,748.3647 (requires 4 bytes to store a value). If a greater number of decimal places are required, use the decimal data type instead.
4 decimal places would give you the accuracy to store the world's smallest currency sub-units. You can take it down further if you need micropayment (nanopayment?!) accuracy.
I too prefer DECIMAL to DBMS-specific money types, you're safer keeping that kind of logic in the application IMO. Another approach along the same lines is simply to use a [long] integer, with formatting into ¤unit.subunit for human readability (¤ = currency symbol) done at the application level.
If you were using IBM Informix Dynamic Server, you would have a MONEY type which is a minor variant on the DECIMAL or NUMERIC type. It is always a fixed-point type (whereas DECIMAL can be a floating point type). You can specify a scale from 1 to 32, and a precision from 0 to 32 (defaulting to a scale of 16 and a precision of 2). So, depending on what you need to store, you might use DECIMAL(16,2) - still big enough to hold the US Federal Deficit, to the nearest cent - or you might use a smaller range, or more decimal places.
Sometimes you will need to go to less than a cent and there are international currencies that use very large demoniations. For example, you might charge your customers 0.088 cents per transaction. In my Oracle database the columns are defined as NUMBER(20,4)
If you're going to be doing any sort of arithmetic operations in the DB (multiplying out billing rates and so on), you'll probably want a lot more precision than people here are suggesting, for the same reasons that you'd never want to use anything less than a double-precision floating point value in application code.
I would think that for a large part your or your client's requirements should dictate what precision and scale to use. For example, for the e-commerce website I am working on that deals with money in GBP only, I have been required to keep it to Decimal( 6, 2 ).
A late answer here, but I've used
DECIMAL(13,2)
which I'm right in thinking should allow upto 99,999,999,999.99.