Tax Rounding Discrepancies (Doc ID 2859647.1)

Last updated on SEPTEMBER 15, 2023

Applies to:

Goal

Scenario:

For a given account in Billing Revenue Management, based on database extract (for demonstration) from event and item tables, for all recurring charges and adjustments, it is observed that:

• If you sum the calculated tax (7%) per line item you will arrive with the total of 520.50.
• Note that BRM is calculating taxes per charge or per line item as per configuration.
• If you sum up all charges, it will be 7435.50.
• Then calculate the 7% tax from 7435.50, you will get 520.49.
• There is a discrepancy of 10 cents.
• Customer expects to calculate the tax based on the sum of all charges multiple by 7%.

Question:

Is there a way to calculate tax charges based on the total amount/charges of all the event line items in invoice?
Will this be achieved by having bill time taxation rather than event time, or is there a possibility the same rounding discrepancy might occur.

Solution

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