2943462 - Incorrect Tax / Gross Total Calculation For Gross Priced Contracts

• You have a gross priced contract with invoice schedule.
• In the Invoice the Tax Rate is adjusted so that it differs from the source document.
• The Gross Total calculation is incorrect in the invoice.

ByDesign 2005

1. Example with German Tax Adjustments of 2020 from 19% to 16% VAT.
2. You are creating a gross priced contract with invoice schedule.
3. Some dates in the invoice schedule require tax rate adjustments.
4. When the invoice request from the invoice schedule is invoiced, the tax rate adjustment is taking place, but the Gross Total is incorrect.

• The invoice schedule is currently only available in net pricing.
• Within a gross contract, the value is being passed in net pricing within the invoice schedule.
• During invoicing the tax calculation is triggered again and added to the net price passed from the invoice schedule to calculate the gross total.
• If the tax rate between source document and invoice deviates, this will lead to incorrect gross total calculation.
• Sample: The contract line item is created with 119,00 EUR gross price and 19% tax.
• The invoice schedule is created for 100EUR Net Price.
• During invoicing the tax rate is recalculated for 16%: 119,00/116*16 = 16,41EUR.
• The value is added to the net price of the invoice schedule as the gross total: 116,41EUR.

Currently this scenario with changing tax rate from source document to invoice is not supported in gross priced sales documents.

You need to adjust the source document in order to align the tax rate on source document and invoice.

For the German VAT Change scenario, please check blog:

Befristete Mehrwertsteuersteuersenkung in Deutschland (Temporary VAT reduction in Germany)

In the section Gross price in long-term contracts

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