Setting Tax Rounding Preferences for a Customer or Vendor - Japan
The rounding preferences you define on the Set Up Taxes page determine the default rounding settings for customers and vendors.
If the Allow Override Rounding Setting per Entity preference is enabled, you can set the tax rounding method and precision for each customer or vendor individually.
To set the tax rounding method and precision for a customer or vendor, open the customer or vendor record. On the Financial subtab, set the method and precision in the Tax Rounding Precision and Tax Rounding Method fields.
If the Allow override rounding setting per Entity box is not checked, tax amounts will follow the tax rounding method and precision defined for the country nexus, no matter what tax rounding method and precision have been set for customers and vendors. If tax rounding preferences are not defined on the entity record, the system uses the preferences defined for the country nexus.
You must enter the gross amount first, to get the correct tax calculation logic. Then, set the tax rounding method. The selected rounding method is applied to all amounts, the inputs and output. Because of the rounding method, the tax amount based on net amount will differ with that based on gross amount.
For more information see Selecting Precision Settings - Japan and Setting Tax Rounding Methods - Japan.
Related Topics
- Consumption Tax Overview - Japan
- Setting Up Consumption Tax - Japan
- Setting Tax Rounding Methods - Japan
- Selecting Precision Settings - Japan
- Japan Consumption Tax Form
- Deductible Purchase Tax for Japan
- Japan Consumption Tax Reports
- Tax Accounting Overview
- Enabling and Setting Up Taxation Features
- Advanced Taxes
- Creating Tax Codes - Other Nexuses