SAP Knowledge Base Article - Public

2866238 - Reconciliation Run: Calculated tax amount differs from posted tax amount for journal entry XYZ - Rounding Logic and Line Item Calculation

Symptom

The Processing Status of the Reconciliation Report indicates an Error (red).

Under Tab Messages the error shows as: Calculated tax amount differs from posted tax amount for journal entry XYZ - Source Document Type: Tax Ledger Account

Environment

SAP Business ByDesign

Reproducing the Issue

  1. In the General Ledger work center go to Periodic Tasks view / Reconciliation. 
  2. Start a New Reconciliation Run with pertinent parameters including Tax under Subledger Selection.
  3. Under tab Tax / VAT / Sales Tax Calculation Details differences as to Calculated Tax Amount and Posted Tax Amount are listed for an affected G/L Account XXX.
  4. Shown difference amounts to under 1 LC (LC stands for Local Currency).

Cause

Shown differences in Tax Amounts can result from applied rounding methodology for involved documents.

Resolution

We want to illustrate applied rounding behaviour using the Example of an Expense Report ABC (ER) and a tax rate of 19%.

Expense G/L Account XXX shows as Tax Base Amount, Calculated Tax Amount, Posted Tax Amount, Absolute Difference:

G/L Account  Percent JE ID Tax Base Amount Calculated Tax Amount Posted Tax Amount Absolute Difference
XXX 19% 75.66  14.40 14.34 0.06

ER ABC over 90.00 LC contains 6 line items of 15.00 LC including VAT (19%). Per line the following calculation logic applies.

Document Item: ABC-1

Document Item Amount: 15.00 LC (incl. VAT [1.19])

Tax Base Amount = 15.00 LC / 1.19 = 12.605042 LC

Tax Amount  = Tax Base Amount * 0.19 = 2.394958 LC

Document Amount (1.19) Tax Base Amount (1.00) Tax Amount (0.19)
ABC-1 15.00 LC 12.605042 LC 2.394958 LC 
ABC-2 15.00 LC 12.605042 LC 2.394958 LC 
ABC-3 15.00 LC 12.605042 LC 2.394958 LC 
ABC-4  15.00 LC 12.605042 LC 2.394958 LC 
ABC-5 15.00 LC 12.605042 LC 2.394958 LC 
ABC-6  15.00 LC 12.605042 LC 2.394958 LC 

Posted Tax Amount:

Per line-item the Tax Amount is rounded to 2 decimals = 2.39 LC. For the entire document G/L Account XXX this amounts to 6 * 2.39 LC = 14.34 LC.

Tax Base Amount  = 6 * 12.61 LC = 75.66 LC. (This corresponds to the amount posted to expense G/L Account XXX).

Calculated Tax Amount:

For the entire document and G/L Account XXX the calculated Tax Amount is the rounded sum of all line-item Tax Amounts.

2.394958 LC * 6 = 14.369748 LC; resulting in 14.40 LC.

See Also

See SAP Knowledge Base Article 1234567

Keywords

Reconciliaiton Report, Tax, Difference, Rounding , KBA , SRD-FIN-GL , General Ledger , Problem

Product

SAP Business ByDesign all versions