3593697 - Tax Calculation is Incorrect in Sales Orders

You created a sales order with multiple item lines, and notice that the tax amount on one item line is incorrect.  

For example, the net value of the line is 3.696.000 KRW, tax rate is 10%, you expect the tax amount should be 3.696.000 * 10% = 369.600 KRW, but system gives tax amount as 369.599 KRW. There is a difference on the tax amount.

SAP Business ByDesign

1. Go to the Sales Orders work center view.
2. Open the Sales Order ABC. (ABC represents the ID of the sales order).
3. Go to Pricings and Invoicing tab,  then Pricing sub tab.
4. Click Expand All button, you check and item pricing details and found the tax amount on item line XX is not expected. (XX represents the ID of the item line)

System needs to ensure the Tax Amount in Total Pricing agrees with the sum of the tax amount for each line. It is possible that due to currency display decimal set for the currency, the value of the amount is rounded and caused difference. 

For example:  the currency KRW is set to 0 on display decimal in the Business Configuration - Currencies activity.

In sales order ABC, it contains 5 item lines as following.

line 10, net value=565.488 KRW

line 20, net value=565.470 KRW

line 30, net value=562.146 KRW

line 40, net value=3.696.000 KRW

line 50, net value=406.560 KRW

The sum of the line net value =5.795.664 KRW, it is the Total Item Net Value in total pricing.

So in the Total Pricing, 

Total Item Net Value=5.795.664 KRW

The tax rate=10%, so the tax amount is 5.795.664 * 10%=579.566,4 KRW and system takes 579.566 KRW after rounding. 

Now, if you calculate the tax amount individually for each item line where tax rate=10%, you get the following tax amount values.

line 10, tax amount=56.549 KRW

line 20, tax amount=56.547 KRW

line 30, tax amount=56.215 KRW

line 40, tax amount=369.600 KRW

line 50, tax amount=40.656 KRW

The sum of the item tax amount= 579.567 KRW. This value does not match the Tax Amount (579.566 KRW) in Total Pricing. Hence system randomly picked the line 40, and apply the difference to ensure the consistency. Hence, the tax amount is 369.599 KRW on line 40.

This is the correct system behavior as designed.

2596856 - How Rounding Off Works For Net Value And Net Price In Sales Order

3259735 - Difference Between Total and Total Item Value in a Sales Document Such as an Invoice or Credit Memo

tax amount; sales order; customer invoice; difference; mismatch; tax calculation. , KBA , SRD-CRM-INV , Customer Invoicing , Problem