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Diff in Total tax in PO & MIRO

We have multiple line items in a PO with a tax liability of 5% on each line item

Total tax amount calculation in PO

Step1) 5% tax calculation

Step2) Rounding off

Step3) Summing the line item wise tax amount

Whereas during MIRO Total tax amount calculation is ,

Step1) 5% tax Calculation

Step2) Summing the line item wise tax amount

Step3) Rounding off

Due to this a marginal difference ( rounding off diff) gets generated between PO tax amount & Invoice tax amount.

How to handle such scenario so that total tax amount in PO & MIRO remains same.

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4 Answers

  • Best Answer
    Apr 09 at 04:04 AM

    Hi Al ,

    Issue gets resolved by implementing below mentioned correction notes

    2538979

    2575538

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  • Mar 13 at 05:38 AM

    See OSS note 2370366 - Line item wise tax calculation happening even after switching it off in India customization setting - MIRO

    Even it is a bug fix, which is actually contrary to your situation, it explains which customizing is responsible to control whether you calculate item wise or total in MIRO

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    • Hi Jurgen ,

      We are following UAE taxation procedure whereas this note seems to be fit for Indian scenarios.

      But we still implement the same in our sandbox with no changes in Tax calculation process in PO .

      Thanks

  • Mar 12 at 10:03 AM

    Rounding off for each line item in purchase order is not a correct way. Whatever is happening in MIRO, it is correct. You should configure the same thing for PO.

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    • Hi Dibyendu ,

      In PO , system is calculating tax line items wise & round it off prior summing it up whereas in MIRO , system is calculating tax on gross amount & then round it off. Will explain you with example.

      PO Line items are as follow

      Calculation is taken place as mentioned below

      This is how in PO system is calculating tax & I don't know from where it gets control.

      Thanks

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  • Mar 14 at 07:25 AM

    Hi All ,

    Would appreciate any inputs from your side to resolve this issue.

    Thanks in Advance !!

    B/r

    Sachin

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