RE: [sap-log-mm] Sales Tax Calculation Using Brackets

Posted by Sap Land Thursday 8 September 2011 12:13

Posted by Dave Thornburgh (SAP JOAT)
on Sep 8 at 3:18 PM

Sue -

Your example of $0.23 is inconsistent. You say it's only 1 cent, but you're adding 2 cents to the tax on $10. Which is it legally, $0.61 or $0.62? If it's $0.62, then that does equal straight rounding up. Are there other examples in the ranges that don't agree? If it's $0.61, then that equals 5/4 commercial rounding. Once again, are there other examples in the ranges that don't agree?

If they truly have tax values that can't be calculated with a single universal rounding rule, then you have (at least) two choices: Always round down, under collect the tax, and pay the penalty at tax audit time based on under collection of a few hundred or few thousand dollars (a penny at a time), or implement something in the condition value formula to use the range tables.

Dave

---------------Original Message---------------
From: Betty Sue Shane
Sent: Thursday, September 08, 2011 8:52 AM
Subject: Sales Tax Calculation Using Brackets

Florida uses fixed range brackets for the cents portion of the sale and a straight percent on the whole dollars. For example, the tax on 17-32 cents is 2 cents. A 6% calculation on 23 cents is only 1 cent. So for a sale of $10.23, the tax is 10.00 * 6% = .60 + .02 for a total of 62 cents. There are multiple ranges associated with the tax rate. This is not straight rounding up in all cases. How to configure this in SAP? Or is this a user exit or modification? WE DO NOT PLAN TO USE A TAX SERVICE SUCH AS VERTEX.

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