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E1: 43: Tax And Discount Amount Are Not Calculated Correctly In Two-Way Match (Doc ID 2495957.1)

Last updated on JUNE 08, 2021

Applies to:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version 9.2 and later
Information in this document applies to any platform.


Voucher Match (P4314)

Loss of functionality
After taking financials ESUs in November 2018, Taxes and Discounts are calculating incorrectly when the user overrides the Tax Information and Payment Terms Discount at the time of voucher match. If the Payment Terms Discount is overridden first and the Tax Information is overridden second, the taxes and discounts are calculated correctly.

Significance of the loss
About 200 vouchers/invoices per month are impacted in the production (live) environment. If the overrides are entered in the wrong sequence by the user there is no error but the taxes and discounts are calculated wrong and vendor payments will be wrong. Nobody will know the problem occurred until the vendor receives the payment and notifies the company that it was wrong. Then extra time is required to make an adjustment on the vendor payment.

Sequence of events

  1. Make sure UDC 00/LC (Localization Country Codes) includes BD (Bangladesh).
  2. Set Localization Country Code to BD (Bangladesh) in User Profile (P0092).
  3. Create New Bangladesh Supplier Master (P04012) with BDT Currency Code.
  4. In Currency Exchange Rates (P0015A) setup USD to BDT Exchange Rate 0.0119218 BDT per USD.
  5. Setup AP Tax Rule (P0022) with Tax on Gross Excluding Discount radio button selected.
  6. Setup Two Payment Terms (P0014)
    1. B14 = 1.2% if paid in 15 days, Net Due in 30
    2. N30 = Net 30 no discount
  7. Setup Two Tax Rate Areas (P4008)
    1. UVAT 6% Tax Rate Area for 6% VAT
    2. Setup XXXXX Tax Rate Area for 0%
  8. Add Payment Terms N30, Tax Rate Area XXXXX and Tax Explanation Code E to Vendor Master.
  9. In Line Type Constants (P40205) make sure Line Type J is set with Inventory Interface A, Include in Cash Discount Checkbox is Checked, Include in Tax 1 = N (Line is not Subject to Taxes).
  10. Create a J line type Purchase Order (P4310) for Bangladesh Supplier (59276) in US Company 00001 with two lines:
    1. Line 1 is 3,449,745.00 BDT
    2. Line 2 is 796,200.00 BDT
  11. Perform Two-Way Procurement Voucher Match (P4314). Two records are pulled into the grid
    1. Taxable Flag is set to N, Tax Explanation Code E, Tax Area XXXXX and Payment Terms N30
    2. Tax and Taxable Amount and Discount Amount are 0 in Voucher Header Section
  12. The user overrides the values in the grid on both lines one column at a time and the tax and Payment Terms Discount are calculated incorrectly, and the reported issue is duplicated.
    1. Taxable Flag is overridden to Y, Tax Explanation Code U, Tax Area UVAT 6% and Payment Terms B14 (1.2% within 15 Days).
    2. Taxable Amount (4,245,945.00 BDT) is not correct. It should be 4,194,993.66 (Gross Amount 4,245,945.00 – Discount Amount 50,951.34).
    3. Tax calculation (254,756.70 BDT) is not correct. It should be 251,699.62 (Invoice Amount 4,245,945.00 – Discount Amount 50,951.34) x 6%)).
    4. Discount Amount (51,570.19) is not correct. It should be 50,951.34 BDT (Invoice Amount 4,245,945.00 x 1.2%).

Expected or acceptable result
The Tax and Discount calculations should be correct if the tax information AND payment terms discount are entered together.




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