E1: 73: Splits and Installments Out of Balance when Using Vertex Sales & Use Tax Q Series (Doc ID 625774.1)

Last updated on APRIL 07, 2017

Applies to:

JD Edwards EnterpriseOne Sales Order Entry - Version XE to 9.2 [Release XE to 9.2]
Information in this document applies to any platform.

Symptoms

Using Vertex Sales Tax, an out of balance condition can occur when performing splits or installments on an invoice or voucher.  Any application where invoices or vouchers are created may be affected. Splits and installments are generated based upon payment terms and result in more than one pay item being created on an invoice or voucher. When Vertex is used to calculate a tax amount, it is assumed that the amount is always correct when compared to a tax amount calculated by EnterpriseOne.  

EnterpriseOne splits and soft rounds for both Taxable Amounts (ATXA) and Tax Amounts (STAM). The Gross Amount (AG) typically does not get soft rounded; the Taxable and Tax Amounts are added together. The resulting Gross Amount is recorded in the Accounts Receivable or Accounts Payable Ledger and distributed in the General Ledger. The entries always balance.  When an exact split is not possible, soft rounding allows one pay item amount to differ so the final distribution will balance.

Vertex performs tax calculations independent of EnterpriseOne. To enable this calculation, EnterpriseOne passes a $0 tax amount to the Vertex tax calculator.  Given the nature of the Vertex calculation, Tax Amounts are not soft rounded. If the Tax Amount must be split, and no soft rounding is possible, then the recalculated values included in the Accounts Receivable or Accounts Payable Ledger may not always balance to the General Ledger. If the Gross Amounts in the ledgers do not balance, the posting of the records will be unsuccessful.

EnterpriseOne Taxes

Below is an example of how EnterpriseOne uses soft rounding for splits and installments:

 

Taxable Amount

Tax Amount

Gross Amount

G/L Distribution

Explanation

 

 80.42

 4.83

 85.25

 85.25

 

Pay Items

 

 

 

 

Split the transaction into two items.

001

 40.21

 2.42

 42.63

 

Taxable and Tax Amounts divided by 2. Tax Amount rounded up.  Taxable Amount added to Tax Amount to calculate Gross Amount.

002

 40.21

 2.41

 42.62

 

Taxable and Tax Amounts divided by 2. Tax Amount rounded down so the sum of the two Tax Amounts matches the total Tax Amount, $4.83.  Taxable Amount added to Tax Amount to calculate Gross Amount.

Total

 80.21

 4.83

 85.25

 85.25

Gross Amount matches G/L Distribution amount.

Vertex Taxes

Below is an example of how Vertex calculates splits and installments and causes the out of balance condition:

 

Taxable Amount

Tax Amount

Gross Amount

G/L Distribution

Explanation

 

 80.42

 4.83

 85.25

 85.25

 

Pay Items

 

 

 

 

Split the transaction into two items. Taxable Amounts are soft rounded by J.D. Edwards.  Tax Amounts are calculated by Vertex and not soft rounded.

001

 40.21

 2.41

 42.62

 

Taxable and Tax Amounts divided by 2. Tax Amount rounded down.  Taxable Amount added to Tax Amount to calculate Gross Amount.

002

 40.21

 2.41

 42.62

 

Taxable and Tax Amounts divided by 2. Tax Amount rounded down. The sum of the two Tax Amounts does not match the total Tax Amount, $4.83. Taxable Amount added to Tax Amount to calculate Gross Amount.

Total

 80.21

 4.82

 85.24

 85.25

Gross Amount does not match G/L Distribution amount. Out-of-balance transaction will not post.

Cause

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