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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / small difference in ta...
Microsoft Dynamics GP (Archived)

small difference in tax calculation

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Posted on by P NOUSHAD 1,821

Hi,

When calculate tax we are getting a small difference in tax calculation.  5% on 16,421,681.50.  Is there any option to fix this issue. or is there any round of option when calculated line item extended price  

             16,421,681.50         821,084.08  to be as per calculation
        821,084.12  from GP
                   (0.05)

0412.tax1.png

3125.tax2.png

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  • Suggested answer
    Tom Mathew Profile Picture
    Tom Mathew 1,750 on at
    RE: small difference in tax calculation

    Please try reconciling this document using the reconcile sales document utility and let me know

  • Suggested answer
    Almas Mahfooz Profile Picture
    Almas Mahfooz 11,009 User Group Leader on at
    RE: small difference in tax calculation

    I have experienced it with VAT.

    We have Web Order Management system from where we users were creating sales order and invoices, with VAT implementations we have to add the tax amount . So Our eConnect integration was giving amount  as calculator and SQL whereas GP was giving little change amount. Dexterity rounding was different then the one we were doing on SQL and which is also given by the calculator. So by selecting second round option for tax id we get the same amount as GP gives when invoice get manually entered in GP. No distribution error and etc. Below is the detail of these rounding options.

    Round:
Determine how tax calculations will be rounded. Choose from the following options:
Up to the Next Currency Decimal Digit
Select to round numbers to the next currency decimal digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.57.
To the Nearest Currency Decimal Digit
Select to round numbers to the nearest currency decimal digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.56.
Down to the Previous Currency Decimal Digit
Select to round numbers down to the previous whole digit. For example, if the tax amount is calculated to be $1.3306, the tax will be $1.33.
Up to the Next Whole Digit
Select to round numbers up to the next whole digit. For example, if the tax amount is calculated to be $1.263, the tax will be $2.00.
To the Nearest Whole Digit
Select to round numbers to the next whole digit. For example, if the tax amount is calculated to be $1.26, the tax will be $1.00. If the tax amount is calculated to be $1.51, the tax will be $2.00.
Down to the Previous Whole Digit
Select to round numbers down to the previous whole digit. For example, if the tax amount is calculated to be $1.563, the tax will be $1.00.
  • Suggested answer
    L Vail Profile Picture
    L Vail 65,271 on at
    RE: small difference in tax calculation

    Hi,

    I can't speak to VAT, but I know that GP has long had rounding errors. Typically sales tax is calculated on the document subtotal, but that's not the way the GP tax engine works. The tax is calculated on a line item basis, so rounding differences are a normal occurrence. This improper calculation has been known by GP for many, many years, but it still works this way. It appears that this is what is causing your tax to be off as well.

    Kind regards,

    Leslie

  • Suggested answer
    Almas Mahfooz Profile Picture
    Almas Mahfooz 11,009 User Group Leader on at
    RE: small difference in tax calculation

    btw 5% of subtotal will be 821084.07500000

    It seems you are rounding it after calculating, so don't do any roundings. and changed rounding option to second value 'To The Nearest Currency Decimal Digit', delete line item and reenter it.

  • P NOUSHAD Profile Picture
    P NOUSHAD 1,821 on at
    RE: small difference in tax calculation

    calculator amount

  • Almas Mahfooz Profile Picture
    Almas Mahfooz 11,009 User Group Leader on at
    RE: small difference in tax calculation

    What rounding option you want to follow? I mean you want calculator amount or GP amount?

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