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GST: How rounding effects tax calculation over sales order with GST taxes ? (Doc ID 2603513.1)

Last updated on OCTOBER 25, 2019

Applies to:

Oracle Financials for India - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

How the tax computation happens on sales order when GST taxes are applied ?

Let us consider with below narration where Sales order has multiple lines where 
a. Line 1 - line amount is 472693.5
b. Line 2 - line amount is 0.1 
c. Line 3 - Line amount is 25896.2

Where 18% GST tax rate being applied. 
If so why system is not calculating as line amount * 18 %. i.e.  line amount is 472693.5 * 18 % i.e. which should be equal to 85084.83 
and vice versa. 

Whereas the actual calculation is as below  
a. Line 1 - line amount is 472693.5  * 18% = 85084.92 
b. Line 2 - line amount is 0.1           * 18% = 0 
c. Line 3 - Line amount is 25896.2   * 18%  = 4661.28

Why is the calculated tax amount different ?

Solution

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In this Document
Goal
Solution


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