Understanding Tax Amount Rounding for Transaction Processing In Japan

When you enter transactions for which a tax applies, the system calculates the taxes based on the tax rules, tax rate area, and tax explanation code that you set up. Transactions for which one or more taxes might apply include purchase order, voucher, sales order, and invoice transactions. When you enter a transaction, the system calculates the taxes and then rounds the tax amount.

In Japan, you can now specify the rounding method that the system applies to the tax amount by associating a rounding method to the tax rate area that you use for the transaction.

The standard tax calculation routine (X00TAX) uses the country server and plug-and-play technology to call the new business function (B75J0TAX) to perform the tax rounding. To enable the county server and plug-and-play technology for Japan, the Localization Country Code field in your user profile must be set to JP (Japan).