1. Localizations for Japan Implementation Guide
  2. What You Should Know About Tax Rounding in Japan

What You Should Know About Tax Rounding in Japan

The solution for rounding tax amounts in Japan is based on these assumptions:

  • The setup for the yen in the JD Edwards EnterpriseOne system includes no decimal places.

  • Rounding of tax amounts is applicable at the line level.

  • When totaling an order, the system uses the rounded tax amounts, so the totaled amount does not include decimal places and the system does not run the rounding routine over the totaled amount.

  • If you set up tax rules in the Tax Rules program (P0022) to perform rounding at the order level for sales order processing, the system applies the rounding method that you specify in the Setup Rounding Options program and then uses soft rounding to determine the final amount.

  • If you process a transaction using foreign currency, the system:

    1. Calculates the taxes in the foreign currency.

    2. Applies the rounding method that you set up in the Setup Rounding Options program.

    3. Multiples the rounded foreign amount by the exchange rate that you set up for currency conversion. The system does not round the converted amount.

  • The system uses the tax rounding method that you specify in the Setup Rounding Options program for transaction processing that uses the standard tax calculation routine (X00TAX) only. The X00TAX runs the business function for tax rounding (B75J0TAX) after first accessing the country server and plug and play modules for Japanese localizations.

    The system does not use the rounding method that you specify when the system converts amounts from one currency to another.