It just means to make sure that you complete the operation and don't have any additional digits when you're done. For example, if you're adding 3.7 and 4.3, you can say the answer is 8, not 8.0.
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I am not sure what you mean by simplify. If you mean round, then it is usually done by using "fixed format" to limit the number of decimal places displayed. Different calculators have different procedures for doing this.
keep your decimals in the right position
To add the two decimals together
you can round to a certain point, or turn them into fractions and simplify.