The TRUNC() function in Salesforce cuts a number down to the number of decimal places you choose, without rounding. A typical case is a sales commission rule: pay 7.5% of the opportunity amount and drop any fraction of a cent instead of rounding it up. ROUND() would sometimes pay an extra cent; TRUNC() follows the rule exactly.
In this tutorial, I will explain the TRUNC() syntax, what each value of the second argument does, how TRUNC differs from ROUND and FLOOR (with results I tested in a Salesforce Developer Edition org), why there is no ROUNDDOWN function, and how to use TRUNC in a formula field step by step.