Skip to Content

Logic behind tax amount calculation in FB60

Hello,

Sorry for the long post!

I want to know how exactly sap works on calculating the tax amount. One of my users wants to overwrite the local tax amount (tax amount in local currency calculated by SAP based on the rate for Taxes field) with the amount entered in tax tab->tax data->LC tax amount.

Scenario:

The base amount is 6000 USD, Tax : 7% i.e. 420 USD. Rate for Taxes : 1.39770. Local currency amount generated by SAP : 587.03

Here is the procedure the user followed:

The user didn't check the auto calculate tax amount, so tax amount needs to be entered manually. User entered tax amount as 587.04 in local currency (As received from the vendor) and rate for taxes as 1.39770.The tax amount in doc. currency is shown as 420 USD. When the user simulated the document, the LC tax amount is changed to 587.03. According to the actual calculation (420*1.39770 = 587.034), the amount is right. The user now complains "How the amount is changed even after I enter amount manually?".
Now coming to the debugging part, the tax amount is calculated in LTAX1F02 under subroutine (FORM steuer_umrechnen USING s01_fwste s01_hwste). According to my observation, in which ever currency the tax amount is entered(either 420 USD or 587.04 SGD), the amount taken into account is doc.currency amount and system auto calculates the local amount based on the exchange rate entered in rate for taxes. System accepts whatever value I give in DC tax amount, but it's overwriting the LC amount. Is it a standard behavior of SAP? Do we need to configure any settings or enhance standard logic to NOT TO AUTO CALCULATE TAX AMOUNT IN LC ?.

Attaching the screen shots for better understanding.

Any clue is highly appreciated.

Regards,

Priyanka.

lc-tax-issue.gif (91.2 kB)
Add comment
10|10000 characters needed characters exceeded

  • This is not an ABAP question, is it? Can you remove the tag "ABAP" please?

  • Hi Uwe,

    Apologies.

    I implemented an implicit enhancement under form steuer_umrechnen to overcome the problem. But when the LC tax amount is entered, I can't find any global variable that's storing this amount(In debugging). So, my implementation is not working in that case. I wanted to know any developer has faced this issue earlier, so that they can shed some light on this. Hope you understand my concern.

    Thanks,

    Priyanka.

  • Get RSS Feed

3 Answers

  • Jul 07, 2017 at 05:32 PM

    Hi

    Normally it should be possible to enter and post manual tax amounts. Did you try any transaction other than ENJOY like FB01 ? Enjoy transactions work in different fashion. To switch this off, you can configure table TVAT001 at below path.

    Spro - Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Switch Off Tax Translation between Local and Document Currency

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jul 10, 2017 at 02:16 PM

    Hi Priyanka,

    Its a standard behavior of SAP to calculate the LC amount of the DC amount by taking the prevailing exchange rate. If you want to keep your LC amount of Tax different then please try the below settings (as suggested by Madhu also).

    SPRO - Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Switch Off Tax Translation between Local and Document Currency

    However, in that case the difference amount will be posted to the Unrealized Forex Gain/Loss A/c. The actual Tax amount in LC was coming as 2123.65 which was changed to 2125.

    Hope, it helps.

    Regards

    Ramesh

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi Priyanka,

      The help of Tol per in Tax code says that "For the tax code, this defines the percentage rate which is accepted as tolerance between a calculated value and a value you have entered......". So its strange that changing the Tol per in a tax code through FTXP impacting any other config items. Sorry but I have not come across any such thing before.

      No rounding rule means the Commercial rounding which is if the digit is 5 or above 5 then rounded up to the next digit while below 5 is ignored.

      Regards

      Ramesh

  • avatar image
    Former Member
    Jul 07, 2017 at 06:25 AM

    Preference is given to document amount currency as it serves multiple purpose. The Company Code currency and reporting currencies could be different.

    As per the tax behaviour, system calculates based on the document currency. Translation of currencies happens at the backend, based on rates.

    Hence we have the F/X gain / loss amount calculation - which is reconciling the Document Amount and Local Currency Amount

    Add comment
    10|10000 characters needed characters exceeded

    • Hi,

      Thanks for the information.That means SAP will calculate tax amount in company currency(local currency) even after I manually enter the tax amount? If so, Is there any way that I can make system take my input instead of auto-calculating the amount?

      Regards,

      Priyanka.