E1: 42: Case Study: Example of Calculating Sales Tax at Order Level
(Doc ID 2381011.1)
Last updated on MARCH 30, 2018
Applies to:JD Edwards EnterpriseOne Sales Order Management - Version 9.1 and later
Information in this document applies to any platform.
On Line Invoice (P42230)
On Line Tax Summary (P42235)
EDI Invoice Print (R42565)
On some but not all multi-line sales orders with taxes, there is a .01 rounding difference in the tax calculation depending upon which tax grouping is displayed. The client expects no rounding difference to ever occur
The issue can be reproduced at will with the following steps:
- Create a Tax Rate Area (P4008) with 13% percent Sales Tax
- Create a four line Sales Order (P4210) with the tax rate area as follows:
- 55 units @76.5000 Extended Amount = 4,207.50
- 105 units @149.5000 Extended Amount = 15,697.50
- 260 units @63.0000 Extended Amount = 16,380.00
- 135 units @145.0000 Extended Amount = 19,575.00
- Save and reinquire on the order
- Total Order Extended Amount = 55,860.00
- Row Exit to Online Invoice (P42230)
- Online Invoice (P42230) shows Tax @13% of 55,860.00 is 7,261.81
- Use calculator which shows 13% x 55,860.00 = 7,261.80
- Use calculator to calculate tax on each line and round to 2 decimals, tax is 7,261.81
- 4,207.50 x 13% = 546.98
- 15,697.50 x 13% = 2,040.68
- 16,380.00 x 13% = 2,129.40
- 19,575.00 x 13% = 2,544.75
- From Online Invoice, take the Form Exit to Tax Summary (P42235)
- By Group Radio Button shows Tax @13% of 55,860.00 is 7,261.81
- By Area Radio Button shows Tax @13% of 55,860.00 is 7,261.80
- By Authority Radio Button shows Tax @13% of 55,860.00 is 7,261.80
- Run EDI Invoice Print
- Check the EDI Invoice Additional Header - Outbound (F470461) record.
- The Sales Tax Total (TAXT) field is populated with 7,261.81 which does not match the EDI customers calculation of 7,261.80
- The Customer rejects the invoice and will not pay it intil it is reduced by 0.01.
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