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E1: 76B: Sales Update Brazil (R76B803) Incorrectly Calculates IPI Tax In Accounts Receivable for Sales Transactions in Foreign Currency (Doc ID 2850821.1)

Last updated on MAY 02, 2022

Applies to:

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

Symptoms

When selling to an international customer the IPI taxes in the Accounts Receivable is incorrectly calculated. While exchange rate (P0015A) is set up using multiplier method, system is correctly multiplying to calculate foreign amount for the item however; it incorrectly divides to convert to foreign currency for IPI Tax.

Setup:

  1. P0015A – Exchange rate – Important: make sure we have Conversion Method set to Multiplier Method. R$ 5.00 = US$ 1.00 (Multiplier 0.2000)
  2. International customer meaning, this is a selling transaction to foreign customer   
  3. P76B18 – IPI Tax / Fiscal Classification set to 10%
  4. P4106 – Price (Domestic) R$ 10.00

Steps:

  1. P4210 – Sales Order – From Branch Plant in São Paulo (Brazil) to customer in US. See that, Foreign Extended Price is $200.00. It is (R$ 10.00 X 100) multiplied by 0.2 = $ 200.00 (Dollars).   
  2. P4205 – Ship confirm the order just previously created
  3. R76558B – Generate Nota Fiscal
  4. R76560B – Print Nota Fiscal
  5. R76B803 – Sales Update Brazil - Generate Tax Lines
  6. P4210 – Verify and see that, the IPI tax which must be 10% of total amount of the order is displayed as $ 500.00 (dollars). It seems like, when system calculates the IPI it uses tax rate divider rate incorrectly making the IPI = Unit price R$ 100.00 x 5.00 = US$ 500.00 incorrectly.
  7. R42800 – Run sales update
  8. P0011 – Consequently, see these incorrectly tax amount is affecting the journal entries.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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