SAP Knowledge Base Article - Public

3291943 - 'Difference Amount' in 'Tax Reconciliation Account Balance' App Caused by Rounding

Symptom

In the 'Tax Reconciliation Account Balance' app (ID F2095) you notice small differences shown in the 'Difference Amount' column caused by rounding differences between 'Tax Amount' and 'Calculated Tax'

Environment

S/4HANA Cloud

Reproducing the Issue

  1. Open 'Tax Reconciliation Account Balance'
  2. Enter required fields
  3. See tiny difference amount caused by rounding difference

Cause

The small difference is due to the differences between the two calculation methods used for calculating tax amounts.

 

The 'Tax Amount' column is taken directly from the accounting document. This amount is calculated using the 'Rule of Three' unless otherwise specified. This method is used by standard, as it is the same method used by tax accountants. Please see the blog that describes this method. This blog refers to BYD but the same logic applies for S/4HANA Cloud. 

 

The column 'Calculated Tax' is calculated using Hana Database stored procedures. These procedures are used, as this app is intended for detecting discrepancies in posted tax amounts, and not for legal reporting. 

These methods can result in small rounding differences; hence the small differences seen. It is not possible to configure the calculation rules for this app, as full tax re-calculation with consideration of the tax customizing in financials would reduce the performance of the app significantly.

Resolution

The system behaves as designed.

You can set a filter on the 'Difference Amount' column (e.g. > 1 Yen) in order to filter out differences caused by this rounding effect.

If ever any doubt that the difference amount is not caused by calculation differences, please follow the advice given in the documentation for this app:  

 

"To investigate a difference, you can drill down to see the tax codes and to see data on the journal entry/document level. You can navigate to the Manage Journal Entries app and continue your investigation to isolate the reason for the difference between posted and calculated amounts, for example by checking related logistics documents." 

 

Keywords

Rounding, difference, amount, tax, reconciliation, account, balance, f2095, tax amount, calculated tax , KBA , FI-GL-GL-F , Value Added Tax (VAT) , Problem

Product

SAP S/4HANA Cloud 2208