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    Tax Variance Oracle Exp

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    maksud
    The tax calculations and amounts on the invoice are correct after applying a conversion rate of 105.75. The invoice had two item lines totaling $1066.67 and $4266.67 which were correctly converted to local currency at the 105.75 rate. Various taxes were also correctly calculated and applied to each line at rates of 15%, 15%, and 20% and properly converted to local currency.

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    Tax Variance Oracle Exp

    Uploaded by

    maksud
    6 views2 pages
    The tax calculations and amounts on the invoice are correct after applying a conversion rate of 105.75. The invoice had two item lines totaling $1066.67 and $4266.67 which were correctly converted to local currency at the 105.75 rate. Various taxes were also correctly calculated and applied to each line at rates of 15%, 15%, and 20% and properly converted to local currency.

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    The tax calculations and amounts on the invoice are correct after applying a conversion rate of 105.75. The invoice had two item lines totaling $1066.67 and $4266.67 which were correctly converted to local currency at the 105.75 rate. Various taxes were also correctly calculated and applied to each line at rates of 15%, 15%, and 20% and properly converted to local currency.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as txt, pdf, or txt
    6 views2 pages

    Tax Variance Oracle Exp

    Uploaded by

    maksud
    The tax calculations and amounts on the invoice are correct after applying a conversion rate of 105.75. The invoice had two item lines totaling $1066.67 and $4266.67 which were correctly converted to local currency at the 105.75 rate. Various taxes were also correctly calculated and applied to each line at rates of 15%, 15%, and 20% and properly converted to local currency.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
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    Download as txt, pdf, or txt
    of 2

    Please see the following analysis done by DEV:

    The tax calculation and accounted amounts on invoice after applying the
    conversion rates are correct.

    Below is the calculation in detail:

    Invoice has 2 item lines:


    Line amount - accounted amount by applying conversion rate of 105.75
    1066.67 ~ 112800.3525
    4266.67 ~ 451200.3525

    Conversion rate: 105.75


    invoice and payment currency is USD
    ledger currency is BDT

    Single transaction tax @15% is applied on both lines

    1066.67*15% =160.0005 ~ 160 (rounded value)


    4266.67*15% =640.0005 ~ 640

    applying the conversion rate


    160.0005*105.75= 16920.05
    640.0005*105.75 =67680.05

    2 Withholding taxes are applied on both lines:


    15% -- Tax1
    160.0005 ~ 160
    640.0005 ~ 640

    20% -- Tax2
    213.334 ~213.33 (rounded value)
    853.334 ~ 853.34

    applying the conversion rate of 105.75:


    22560.07 22560.0705
    90240.07 90240.0705
    67680.05 67680.052875
    16920.05 16920.052875

    rounding difference between unrounded and rounded amounts (0.01) is adjusted


    on 67680.05 to 67680.06.

    All these values on the AP invoice distributions matches to above


    calculation. AWT distributions are prorated across item and ERV line and sum
    of them matches to above values.

    Conclusion: There is no issue with transaction or withholding tax calculation


    here and single conversion rate of 105.75 is only applied on this invoice.
    Keeping the rounding and precision setup at customer, you just cant reverse
    the accounted amount and compute conversion rate as customer did in this
    case.

    Also, for the screenshot #Difference_USD_and_BDT.PNG, the entries at


    accounting or GL are not pertaining to same distribution. GL have its own
    logic to club different entries by 14 different parameters like account,
    credit side, debit side, liability or cash and so on. Please check the
    accounting at distribution level.
    990721 3 LIABILITY 1066.67 112800.35
    above line has 2 distributions which are clubbed to single line
    and

    990722 1 AWT 1066.67 112800.14


    This line has 4 distributions clubbed together to get single line.
    This is expected at accounting. For more details on this, please check with
    accounting team.

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