E1: 42: Compound Tax On Invoice Print With V Tax Explanation Code
Last updated on NOVEMBER 18, 2015
Applies to:JD Edwards EnterpriseOne Sales Order Processing - Version 9.0 and later
Information in this document applies to any platform.
On : 9.0 version
Sales Invoice Print (R42565)
Tools Release 9.1
Invoice Print (R42565) calculates the first tax authority taxes incorrectly if Tax Explanation Code V is used with a Tax Rate Area (P4008) that has the Compound Tax Checkbox checked. For Example, if Tax Explanation Code is V and Tax Rate Area has compound tax checked (P4008) and two different tax authorities with rates of 5.00% and 9.50 %, and the order amount is 1,000.00, the first tax authority is calculated as 54.75 when it should be 50.00. The tax on Tax checkbox should not affect the tax calculation on the first tax authority.
Even though the setup should use V+ as tax explanation code, the system should not calculate a bogus number (54.75) for the first tax authority. Either tax on tax should be calculated correctly or is should not be calculated at all. It should not calculate 54.75.
The issue can be reproduced at will with the following steps:
1. Setup a tax area (QUE) with compound tax checked (P4008) and two different tax rates, 5.00% and 9.5%.
2. Enter a sales order in the Canadian Branch (77) with a Canadian Customer that uses the tax area just created as well as tax explanation code V (Value Added Tax).
3. Enter a detail line for an amount of 1,000 CAD. Make sure Item is Taxable with QUE tax rate area and V tax explanation code.
4. On Sales Invoice Print (R42565) Version, set Processing Option 14 under Print tab (Print Tax Summary) = 3 (Summarize taxes by authority).
5. Taxes by Authority are wrong
• Revenue of Canada: 1,000.00* 5% should be 50.00 but is 54.75
• Government of Quebec (Compound): (1,000.00+50.00) * 9.5% should be 99.75 but is 95.00
• Order Total = 1,000.00 + 50.00 + 99.75 should be 1,149.75 but is 1,145.00
6. Create an identical order except use V+ tax explanation code.
7. Compound tax is calculated as expected.
8. The first tax authority should not be calculated as 54.75, since tax on tax does not apply to the first tax calculation.
Use V+ Tax Explanation Code when Compound Tax is checked in the Tax Rate Area (P4008). When using V Explanation Code, use a tax rate area that has Compound Tax unchecked in the Tax Rate Area (P4008).
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