2943462 - Incorrect Gross Total When Tax Rate Differs from Sales Contract

A gross-priced sales contract with an invoice schedule is available.

During invoicing, the tax rate on the invoice differs from the tax rate on the source document.
As a result, the Gross Total calculated in the invoice is incorrect.

SAP Business ByDesign 

• During the temporary German VAT reduction in 2020 (from 19% to 16%), a gross-priced sales contract with an invoice schedule was created. Some scheduled invoice dates fell within the period requiring the reduced VAT rate.
• When customer invoices were created from the corresponding invoice requests, the system correctly adjusted the tax rate from 19% to 16%; however, the calculated Gross Total on the invoices was incorrect.

• The invoice schedule supports net pricing only. For gross-priced sales contracts, the invoice schedule stores and transfers the net amount to the customer invoice.
• During invoice creation, the system recalculates the tax based on the tax rate determined at the time of invoicing and adds the recalculated tax amount to the net amount from the invoice schedule to derive the Gross Total.
• If the tax rate determined during invoicing differs from the tax rate on the sales contract, the recalculated Gross Total no longer matches the original gross price defined in the sales contract. Consequently, the invoice Gross Total is calculated incorrectly.

Example: A sales contract line item is created with a gross price of 119.00 EUR and a tax rate of 19%, resulting in a net price of 100.00 EUR. The invoice schedule stores the net amount of 100.00 EUR. During invoicing, the applicable tax rate is determined as 16%. The system recalculates the tax based on the original gross amount:

119.00 ÷ 116 × 16 = 16.41 EUR

This recalculated tax amount is then added to the net amount stored in the invoice schedule:

100.00 EUR + 16.41 EUR = 116.41 EUR

As a result, the invoice Gross Total is 116.41 EUR instead of the original 119.00 EUR.

• This scenario is not supported for gross-priced sales contracts with invoice schedules when the tax rate determined during invoicing differs from the tax rate on the sales contract.
• To avoid incorrect Gross Total calculations, ensure that the tax rate on the sales contract matches the tax rate that will be applied during invoicing.
• If the applicable tax rate changes after the sales contract has been created, update the sales contract before creating the customer invoice so that both documents use the same tax rate.

Temporary Reduced VAT Rates for Germany in SAP Business ByDesign

Gross Price, Contract, Invoice Schedule, Gross Total, Tax Rate, Bruttopreis, Vertrag, Rechnungsterminplan, Steuerrate, Gesamt Brutto , KBA , AP-TTE-TC , Tax Calculation , AP-PRC-PC , Calculation , Problem