Tax Amount Rounding
Taxes applicable on a transaction are generally calculated as the taxable basis multiplied by the tax rate equals the tax amount. This calculated amount can result in an odd value or with a large number of decimal place.
You can configure the tax setup to adjust or round the tax calculation according to the specific requirements of the transacting parties and tax authority or to the accepted currency denominations.
Key parameters that influence the rounding of calculated tax amount are:
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Tax precision: The number of decimal places to which to calculate the tax amount.
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Minimum accountable unit: The smallest currency unit that a tax amount can have.
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Rounding level: The transaction level at which the rounding is to be performed. The available options are Header and Line.
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Rounding rule: The method that is used to round off the calculated taxes to the minimum accountable unit. The available options are Up, Down, and Nearest.
Define the key parameters at various places within Oracle Fusion Tax. The rounding process derives the tax precision and minimum accountable unit details from the tax setup. The rounding process derives the rounding rule and rounding level details through the predefined processing hierarchy involving:
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Configuration owner tax options defined for the configuration owner and event class
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Event class options for the event class
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Party tax profiles of the parties or party sites as given in the rounding precedence of the configuration owner tax options or in the derived registration party
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Tax