My Oracle Support Banner

E1: 43: Enhancement Available in Match Voucher Match to Open Receipts (P4314) to Allow Soft Rounding for Tax Calculation Grouped by Tax Area and Item Group (Doc ID 2475356.1)

Last updated on MARCH 15, 2024

Applies to:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version 9.1 to 9.2 [Release 9.1 to 9.2]
Information in this document applies to any platform.

Goal

By design, there is a difference in the Soft Rounding calculation between Sales Orders and Purchase Orders when using an Item Group (Purchasing Taxable) for Multiple Tax Rate configuration.

In the Sales Order module, when Sales Update (R42800) creates Accounts Receivable records (F03B11/F0911), a Soft Rounding for Tax Calculation is done grouped by Tax Area and Item Group.

In the Purchase Order module, when Match Voucher to Open Receipts (P4314) creates Accounts Payable records (F0411/F0911) a Soft Rounding for Tax Calculation is done grouped by Tax Area only. The Item Group (Purchasing Taxable) was ignored. For example, in Procurement consider the following:

  1. In P4008 set up tax area JP10 with 10% tax rate, no Item Number.
  2. In P4008 set up the same tax area JP10 with 8% tax rate for Item Number 00000003.
  3. Create supplier 765432 with tax rate area JP10.
  4. In the Item Master / Item Branch (P4101/P41026), create item 1232 and indicate Purchasing Taxable (TX) = Y.
  5. In the Item Master / Item Branch (P4101/P41026), create item 1233 and indicate Purchasing Taxable (TX) = 3.
  6. Create a purchase order (OP 55555) with 5 lines. On lines 1, 3, and 5, indicate item 1232 (10% tax rate). On lines 2 and 4 indicate item 1233 (tax rate 8%)
  7. Receive the purchase order.
  8. Using Match Voucher to Open Receipts, create a voucher for OP 55555.
  9. Review the tax calculation. Note the Soft Rounding for Tax Calculation did not occur by Item Group / Purchasing Taxable (TX) value.

An enhancement is now available in 9.1 and 9.2 to allow the Soft Rounding for Tax Calculation in Procurement to match the calculation for Sales.  The enhancement allows Match Voucher to Open Receipts to create Accounts Payable records using the Soft Rounding for Tax Calculation grouped by Tax Area and Item Group / Purchasing Taxable (TX).

In the example above, with the enhancement active, the Soft Rounding for Tax Calculation will be done grouped by Tax Area & Item Group, lines 1, 3, and 5 with 10% tax rate and lines 2 and 4 with 8% tax rate. The Soft Rounding for Tax Calculation occurs separately for each tax rate within a transaction to keep the amounts discrete.


New Value in Tax Constants

Prior to the enhancement, no logic existed in the Voucher Match soft rounding calculation to consider Tax Rate. Only the Tax Explanation and Tax Area were considered.

In the solution, new logic is introduced to allow the Voucher Match Soft Rounding for Tax Calculation to include Tax Rate and Item Group.

With the enhancement active, soft rounding logic will differ based on the new flag introduced in Tax Rules (P0022) for the A/P system. The enhancement functionality reused the existing table column Summary Level Tax Calculation Flag (TAXL).

In the Tax Rules (P0022) for Accounts Payable, when the user activates the Voucher Match Tax Rounding flag for the Company the Tax Rate will be included in soft rounding. If the Voucher Match Tax Rounding flag is not active for the Company only the Tax Explanation Code and Tax Area will be included.

The Tax Rules - Tax Rules Revisions shows the following new item after the enhancement.


What You Should Know

1. By default, the value for TAXL will be turned OFF in the system.
2. In P0022, when a record does not exist for the company the system uses the A/P constant of default company 00000. If a record does not exist for company 00000 then the default value of N will be used for Voucher Match Tax Rounding (TAXL).

Solution

To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!


In this Document
Goal
 New Value in Tax Constants
 What You Should Know
Solution
References


My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.