Understanding the Accounting for Rounding

When you print an invoice in the India Localization (IL) system, the system reads the Price Adjustment Ledger File table (F4074) to retrieve the tax amounts that were calculated when the sales order was entered. The system rounds the amount on the basis of the unit defined in the F75I005 table. It then prints the rounded amount on the invoice and stores the difference between the rounded amount and the original amount in the Display Taxes by Legal Document Line table (F75I035). The system stores this difference by the invoice number. The system does not update general ledger accounts with the rounded amounts until you run the Sales Update program (R42800). When you run the Sales Update program for Indian transactions, the system reads the values in the F75I035 table and uses automatic accounting instruction (AAI) item 4270 to update the general ledger and the customer ledger with the rounded amounts. The system stores the general ledger and the customer ledger details in the Account Ledger (F0911) and Customer Ledger (F03B11) tables and the tax related information in rows rather than columns in the Sales Order Tag File – IND – 42 table (F75I017).