Common Terms Used in This Section
- Gross Amount
The total of the taxable amount and the tax amount.
- Round Down
The decrease of an amount in which the system uses decimal values to modify the amount. The system uses this concept when it performs soft rounding.
- Round Up
The increase of an amount in which the system uses decimal values to modify the amount. The system uses this concept when it performs soft rounding.
Note: Compare this term to Rounding Up Method.- Rounded Off Amount
The difference between the unrounded tax amount and the rounded tax amount.
- Rounding Method
A method of rounding in which the system uses the values in the decimal places of the unrounded tax amount to determine whether to increase or decrease the tax amount. If the next decimal place of the unrounded tax amount is less than or equal to 4, the decimal places after the specified decimal place are ignored. If the next decimal place of the unrounded tax amount is greater than or equal to 5, the system adds 1 to the digit preceding the specified decimal and ignores the digits after the specified decimal.
- Rounding Off Method
A method of rounding in which the system ignores all of the decimal places of the unrounded tax amount after the specified decimal to produce the final tax amount.
- Rounding Up Method
A method of rounding in which the system uses the values in the decimal places of the unrounded tax amount to determine whether to increase the tax amount. If any digits exist after the specified decimal place, the system adds 1 to the digit preceding the specified decimal and ignores the digits after the specified decimal.
Note: Compare this term to Round Up.- Soft Rounding
A function that the system performs to minimize discrepancies in rounded tax amounts when multiple line items exist for a voucher or invoice.
- Tax Amount
The amount of tax to pay. This amount is calculated using the tax rate area, tax rate, tax explanation code, and rounding method.
- Taxable Amount
The amount on which the tax amount is calculated.
- Unrounded Tax Amount
The tax amount after the initial tax calculation, before a rounding method is used to modify the amount.