How to enable tax calculation on rounded amounts for Payables invoices?

You can calculate taxes on Payables invoices using rounded amounts in the entered currency before these amounts are converted to the ledger currency. This approach helps minimize rounding differences between the transaction line amounts and tax conversion calculations.

To do this, follow these steps:

1. Navigate to Setup and Maintenance, choose Financials, then go to Transaction Taxes. Select Manage Configuration Owner Tax Options and add a configuration for Payables.
2. Activate the Use Rounded Tax Amount for Conversion option.

Note: If you want to disable this feature, you must select the end date for the existing Configuration Owner Tax Options where the Use Rounded Tax Amount for Conversion option is enabled and create a new entry without this option.

Here are the rounding conversion options available in the Controls and Defaults section of the Create or Edit Tax Regime page:

• Blank: Use the default unrounded amounts in the entered currency for tax conversion calculation to the ledger currency.
• Functional Currency: Use rounded amounts in the entered currency for tax conversion calculation to the ledger currency.
• Transaction Tax: Use the internal transaction amount field (TAX_AMT_TAX_CURR) to store the tax amount in the ledger currency. This value is for reporting purposes only. It is not visible on any page nor has any financial impact.
• Both: Enable both the Functional Currency and the Transaction Tax options.