Setting Tax Rounding Methods - Japan

You can select a tax rounding method at the company level, or set it for each customer or vendor individually.

On the Set Up Taxes page, 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.

Example of Rounding Methods

The following table shows the consumption tax amount corresponding to the rounding method selected.

If an item is priced at ¥893, the consumption tax on the item is ¥44.65.

General Notices