VAT Rounding 
VAT Rounding
Use
When the system calculates VAT (value-added tax) amounts, it automatically rounds them down to the nearest ten haleru, as required by law.
Activities
Customizing
A number of Customizing settings are required in order for the system to round down the VAT amounts. If you use the country template for Slovakia, you do not have to make any settings. Otherwise, make the settings described below.
For each of the VAT condition types used in the calculation procedure, set the rounding rule to rounding down. You do so in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check Calculation Procedure ® Define Condition Types. In the Rounding Rule field, enter
B (Round Down).In the calculation procedure itself, assign a rounding rule to each VAT condition type. You do so in Customizing for FI, by choosing Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Check Calculation Procedure ® Define Procedures. In the VAT condition types, enter
17 in the AltCTy (Condition Formula for Alternative Calculation Type) field. This rounding rule instructs the system to round these amounts according to the rounding rule (which you make in the next Customizing activity). In the standard calculation procedure, TAXSK, these settings have already been made.Define the rounding rule, in Customizing for General Settings, by choosing Currencies ® Define Rounding Rules for Currencies. For each Slovakian company code, set the rounding rule to SKK 10.
Day-to-Day Activities
When the system automatically calculates VAT, for example, when you enter a vendor invoice, it rounds the VAT amount down.
See also:
Tax Translation Between Local and Foreign Currency