E1: 76A: Standard Invoice Entry (P03B11) Incorrectly Sets Error 068L – ‘Tax Area with Perception’ When Creating an A/R Invoice with a Taxable Amount Less Than the Tax Minimum by Invoice Amount in Tax Definitions (P76A10) (Error set by B76A0220) (Doc ID 2880818.1)

Last updated on FEBRUARY 22, 2023

Applies to:

Symptoms

The Tax Definition attached to a tax rate/area is set up with a tax minimum by invoice of 1,000.00 in Tax Definitions (P76A10).

When creating an A/R invoice with a Taxable Amount (ATXA) of 900.00 via Standard Invoice Entry (P03B11) using the tax rate/area attached to this tax definition, P03B11 incorrectly sets error 068L – ‘Tax Area with Perception’. The error is set by BSFN Taxes Minima Control - ARG – 03B (B76A0220).

Tax Area with Perception 

CAUSE:

One or more tax areas you have entered in the invoice are associated to one or more perception percentage, but can not be included in the invoice because the total tax amount is lower than the minimum tax amount allowed

RESOLUTION:

Verify which tax area has perception with minimum amount greater than the tax amount calculated and replace it to other tax area that has not perception percentage associated   

Per the Argentina Localization guide:

Understanding of Tax Minimums

You can specify a minimum value that will determine whether a tax should be applied. You can specify minimums by tax code or by invoice amount. Only one minimum can be used, whether it be the invoice minimum or the tax code minimum. Both are set up by using effective dates.

If you specify minimums by tax code, the system uses the invoice total to calculate the tax value and the resulting tax value is compared to the minimum; this comparison is then used to determine whether the tax should be applied to the invoice.

Note: Changing the tax percentage can affect the minimum.

If you specify minimums by invoice amount, the taxable base amount is compared to the minimum. If the minimum is greater than the taxable base amount, the tax is not calculated.

STEPS TO REPRODUCE

1. Set-up:
   1. P0092: set Localization Country Code field to AR for Argentina. Log off and back on.
   2. UDC: make sure the following UDC table is set up with the value to be used in P76A10 (see point A-4-c):
      1. Tax Codes (76A/TC)
   3. P76A00: Set up tax constants for Argentina
   4. Set up tax areas for Argentina:
      1. P4008: set up a tax area:
         1. GL Offset: CTRL
         2. Tax Rate: 0
      2. P704008A: set up via the Regional Info row menu option in P4008
      3. P76A10: set up a Tax definition called ‘IVA105AR’ for 10.5 %:
         1. G/L Offset: RIVI
         2. Tax value of 10.5 %
         3. Row exit: Tax Min by Invoice: set up a tax minimum of 1,000.00
      4. P76A15: create a tax group with the same name as the TRA to group the tax definition to the TRA
   5. Set up Legal Numbering:
      1. P76002A: establish relationships between document types
      2. P76001A: set up Next Numbers for Legal Numbering
   6. Batch/Interactive Versions:
      1. Set the processing options for the Additional A/B Information (P760101A) program.
      2. Set up processing options for PO - Invoice Entry (P03B11) - ARG (P76A03B1)
      3. Set up corresponding versions of
         1. P01012 and P760101A
         2. P76A03B1 and P03B11
      4. Company
         1. P01012
         2. P760101A
         3. P0010
      5. Customer:
         1. P01012
         2. P760101A
         3. P03013
2. Processing
   1. P03B2002/P03B11: create an invoice for the customer with a taxable amount of 900.00 (which is less than the tax minimum by invoice)

DESIRED OUTCOME

Per the Argentina Localization guide the system should still create the invoice but without tax. No error should be set.

“If you specify minimums by invoice amount, the taxable base amount is compared to the minimum. If the minimum is greater than the taxable base amount, the tax is not calculated.”

Changes

Cause

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