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Tax Difference in Preview Posting for Purchase Order (North America)

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Posted on by 10

Dear community,

I have an issue by posting a purchase order. The case goes like this:

PO with 3 line items

Items Amount Tax Area Code Tax Liable Tax Group Code Quantity
Item 1 13,123 ON Yes Taxable 1
Item 2 15,12 ON Yes Taxable 1
Item 3 20 ON Yes Taxable 1

Total Amount:  48,24

Tax (13% because of ON) 6,27

If I try preview posting the Tax amount is 6,26. If I change the figures the Tax amount will be always differ always just a few digits.

What did I already check:

  • Tax Settings
  • Rounding Methods

What is strange, when I use Tax Are code it is not working and when I use Tax product posting group it seems correct. This is only in Purchase order and Purchase invoice.

I use a Canada localization version 14 of BC.

Thank you for your help,

best regards

Tobro

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  • Verified answer
    MahGah Profile Picture
    MahGah 15,395 on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    That could be the case. I looked into BC 19.4 and did not see that calculation. See codeunit attached 

    Codeunit.zip

  • Tobro Profile Picture
    Tobro 10 on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    We have BC 14 in use. I also thought maybe this is a bug. I will install the latest cumulative update, maybe this is solved there.

    But for me it seams also strange that the tax % is calculated in the code unit since I already defined it...

  • Suggested answer
    MahGah Profile Picture
    MahGah 15,395 on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    Hi Tobi

    Thanks for looking into this deeper. I am in USA hence I cannot say I have encounter this issue.

    What is your BC version?

    The calculation in the code that you mentioned does not looks right. I mean since you already defined the 13% why BC needs to recalculate the %?

    Maybe report this as a bug. [tag:bug]

  • Tobro Profile Picture
    Tobro 10 on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    Thank you for your answers

    In the Invoice section I have used tax area code and tax liable and they are reflecting correct in the lines. I do not use tax exemption no. and tax provincial code.

    For setting up the system I used the assistant. Since we are located in CA and make business withing CA, I think we do not have to use VAT (tax product posting group) but we have to use the GST (tax area code etc.).

    What I found out, in the tax details I have for "ON GST" 13 %. When I look deeper into the code (Codeunit 398) BC is calculating the % with this formula:

    PurchLine.VAT % := Round( 100* (PurchLine."Amount Including VAT" - Purch.Amount) / Purch.Amount,0.00001)

    And here the % is not exactly 13%, it is 13,0001 or 12,99987 and this causes the different Tax in the preview posting I guess.

    Did anybody had the same experience or have an idea what I can do?

    Thank you and best regards

    Tobi

  • Suggested answer
    Dallefeld Profile Picture
    Dallefeld 11,415 UG Leader on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    Did you use the Assisted Setup guide to Setup your VAT? I would review the following.

    docs.microsoft.com/.../finance-setup-vat

    I don't believe that Tax Areas are used for VAT

  • Suggested answer
    MahGah Profile Picture
    MahGah 15,395 on at
    RE: Tax Difference in Preview Posting for Purchase Order (North America)

    Hi

    Quick question. In Invoicing section of PO you can see Tax Liable, Tax Area Code, Provincial Tax Area Code, and Tax Exemption No. (if you do not see them add them through personalization). Does those fields match your Lines?

    Thanks  

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