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Wrong tax calculation #781

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robertholfeld opened this issue Mar 21, 2025 · 5 comments
Closed

Wrong tax calculation #781

robertholfeld opened this issue Mar 21, 2025 · 5 comments

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@robertholfeld
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robertholfeld commented Mar 21, 2025 •
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When multiple positions have the same tax amount then this amount is summarized with 4 digits and then rounded. This results into a wrong tax amount because the amount has to be rounded for each position.
For example a invoice with 4 positions:

position gross price tax percentage tax amount tax amount rounded
1 3.40 7 0.2224 0.22
2 4.48 7 0.2931 0.29
3 7.41 7 0.4848 0.48
4 4.70 7 0.3075 0.31
= 19.99 7 1.3088 1.30

So in this case the xml will create a tax amount of 1.3088 which is rounded to 2 digits 1.31 but we have a tax amount of 1.30

This can be fixed if in LineCalculator.java the itemTotalVATAmount will be scaled to 2 digits.

itemTotalVATAmount = itemTotalNetAmount.multiply(multiplicator).setScale(2, RoundingMode.HALF_UP);
@jstaerk
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jstaerk commented Mar 23, 2025

Hello,
Why four digits?

I understood EN16931-1 that the line net amounts (qty*price/basis+charges-allowances) have to be rounded to two digits (where qty and price are not limited by digits, i.e. a XML type with ~19 decimals), the percentage is then applied on the (2 digit rounded)sum of all lines of the same tax case (specifically example 1 in EN16931) and again rounded to two digits?

I believe itemTotalNetAmount should be the sum of the line totals, which should already been rounded to 2 digits, so why would we need another rounding there?

@robertholfeld
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robertholfeld commented Mar 24, 2025 •
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@jstaerk you can see it in this xml structure, the invoice has a gross price of 19.99 but in the xml is a gross price of 20.00 because the tax rounding is wrong.


<rsm:CrossIndustryInvoice xmlns:rsm="urn:un:unece:uncefact:data:standard:CrossIndustryInvoice:100" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:ram="urn:un:unece:uncefact:data:standard:ReusableAggregateBusinessInformationEntity:100" xmlns:udt="urn:un:unece:uncefact:data:standard:UnqualifiedDataType:100" xmlns:qdt="urn:un:unece:uncefact:data:standard:QualifiedDataType:100">
  <!-- generated by: mustangproject.org vnull-->
  <rsm:ExchangedDocumentContext>
 
    <ram:GuidelineSpecifiedDocumentContextParameter>
      <ram:ID>urn:cen.eu:en16931:2017</ram:ID>
    </ram:GuidelineSpecifiedDocumentContextParameter>
  </rsm:ExchangedDocumentContext>
  <rsm:ExchangedDocument>
    <ram:ID>42</ram:ID>
    <ram:TypeCode>380</ram:TypeCode>
    <ram:IssueDateTime>
      <udt:DateTimeString format="102">20250321</udt:DateTimeString>
    </ram:IssueDateTime>
  </rsm:ExchangedDocument>
  <rsm:SupplyChainTradeTransaction>
    <ram:IncludedSupplyChainTradeLineItem>
      <ram:AssociatedDocumentLineDocument>
        <ram:LineID>1</ram:LineID>
      </ram:AssociatedDocumentLineDocument>
      <ram:SpecifiedTradeProduct>
        <ram:SellerAssignedID>productId</ram:SellerAssignedID>
        <ram:BuyerAssignedID>productId</ram:BuyerAssignedID>
        <ram:Name>Name1</ram:Name>
        <ram:Description>Description</ram:Description>
      </ram:SpecifiedTradeProduct>
      <ram:SpecifiedLineTradeAgreement>
        <ram:NetPriceProductTradePrice>
          <ram:ChargeAmount>3.1800</ram:ChargeAmount>
          <ram:BasisQuantity unitCode="C62">1.0000</ram:BasisQuantity>
        </ram:NetPriceProductTradePrice>
      </ram:SpecifiedLineTradeAgreement>
      <ram:SpecifiedLineTradeDelivery>
        <ram:BilledQuantity unitCode="C62">1.0000</ram:BilledQuantity>
      </ram:SpecifiedLineTradeDelivery>
      <ram:SpecifiedLineTradeSettlement>
        <ram:ApplicableTradeTax>
          <ram:TypeCode>VAT</ram:TypeCode>
          <ram:CategoryCode>S</ram:CategoryCode>
          <ram:RateApplicablePercent>7.00</ram:RateApplicablePercent>
        </ram:ApplicableTradeTax>
        <ram:SpecifiedTradeSettlementLineMonetarySummation>
          <ram:LineTotalAmount>3.18</ram:LineTotalAmount>
        </ram:SpecifiedTradeSettlementLineMonetarySummation>
      </ram:SpecifiedLineTradeSettlement>
    </ram:IncludedSupplyChainTradeLineItem>
    <ram:IncludedSupplyChainTradeLineItem>
      <ram:AssociatedDocumentLineDocument>
        <ram:LineID>2</ram:LineID>
      </ram:AssociatedDocumentLineDocument>
      <ram:SpecifiedTradeProduct>
        <ram:SellerAssignedID>productId</ram:SellerAssignedID>
        <ram:BuyerAssignedID>productId</ram:BuyerAssignedID>
        <ram:Name>Name2</ram:Name>
        <ram:Description>Description</ram:Description>
      </ram:SpecifiedTradeProduct>
      <ram:SpecifiedLineTradeAgreement>
        <ram:NetPriceProductTradePrice>
          <ram:ChargeAmount>4.1900</ram:ChargeAmount>
          <ram:BasisQuantity unitCode="C62">1.0000</ram:BasisQuantity>
        </ram:NetPriceProductTradePrice>
      </ram:SpecifiedLineTradeAgreement>
      <ram:SpecifiedLineTradeDelivery>
        <ram:BilledQuantity unitCode="C62">1.0000</ram:BilledQuantity>
      </ram:SpecifiedLineTradeDelivery>
      <ram:SpecifiedLineTradeSettlement>
        <ram:ApplicableTradeTax>
          <ram:TypeCode>VAT</ram:TypeCode>
          <ram:CategoryCode>S</ram:CategoryCode>
          <ram:RateApplicablePercent>7.00</ram:RateApplicablePercent>
        </ram:ApplicableTradeTax>
        <ram:SpecifiedTradeSettlementLineMonetarySummation>
          <ram:LineTotalAmount>4.19</ram:LineTotalAmount>
        </ram:SpecifiedTradeSettlementLineMonetarySummation>
      </ram:SpecifiedLineTradeSettlement>
    </ram:IncludedSupplyChainTradeLineItem>
    <ram:IncludedSupplyChainTradeLineItem>
      <ram:AssociatedDocumentLineDocument>
        <ram:LineID>3</ram:LineID>
      </ram:AssociatedDocumentLineDocument>
      <ram:SpecifiedTradeProduct>
        <ram:SellerAssignedID>productId</ram:SellerAssignedID>
        <ram:BuyerAssignedID>productId</ram:BuyerAssignedID>
        <ram:Name>Name3</ram:Name>
        <ram:Description>Description</ram:Description>
      </ram:SpecifiedTradeProduct>
      <ram:SpecifiedLineTradeAgreement>
        <ram:NetPriceProductTradePrice>
          <ram:ChargeAmount>6.9300</ram:ChargeAmount>
          <ram:BasisQuantity unitCode="C62">1.0000</ram:BasisQuantity>
        </ram:NetPriceProductTradePrice>
      </ram:SpecifiedLineTradeAgreement>
      <ram:SpecifiedLineTradeDelivery>
        <ram:BilledQuantity unitCode="C62">1.0000</ram:BilledQuantity>
      </ram:SpecifiedLineTradeDelivery>
      <ram:SpecifiedLineTradeSettlement>
        <ram:ApplicableTradeTax>
          <ram:TypeCode>VAT</ram:TypeCode>
          <ram:CategoryCode>S</ram:CategoryCode>
          <ram:RateApplicablePercent>7.00</ram:RateApplicablePercent>
        </ram:ApplicableTradeTax>
        <ram:SpecifiedTradeSettlementLineMonetarySummation>
          <ram:LineTotalAmount>6.93</ram:LineTotalAmount>
        </ram:SpecifiedTradeSettlementLineMonetarySummation>
      </ram:SpecifiedLineTradeSettlement>
    </ram:IncludedSupplyChainTradeLineItem>
    <ram:IncludedSupplyChainTradeLineItem>
      <ram:AssociatedDocumentLineDocument>
        <ram:LineID>4</ram:LineID>
      </ram:AssociatedDocumentLineDocument>
      <ram:SpecifiedTradeProduct>
        <ram:SellerAssignedID>productId</ram:SellerAssignedID>
        <ram:BuyerAssignedID>productId</ram:BuyerAssignedID>
        <ram:Name>Name4</ram:Name>
        <ram:Description>Description</ram:Description>
      </ram:SpecifiedTradeProduct>
      <ram:SpecifiedLineTradeAgreement>
        <ram:NetPriceProductTradePrice>
          <ram:ChargeAmount>4.3900</ram:ChargeAmount>
          <ram:BasisQuantity unitCode="C62">1.0000</ram:BasisQuantity>
        </ram:NetPriceProductTradePrice>
      </ram:SpecifiedLineTradeAgreement>
      <ram:SpecifiedLineTradeDelivery>
        <ram:BilledQuantity unitCode="C62">1.0000</ram:BilledQuantity>
      </ram:SpecifiedLineTradeDelivery>
      <ram:SpecifiedLineTradeSettlement>
        <ram:ApplicableTradeTax>
          <ram:TypeCode>VAT</ram:TypeCode>
          <ram:CategoryCode>S</ram:CategoryCode>
          <ram:RateApplicablePercent>7.00</ram:RateApplicablePercent>
        </ram:ApplicableTradeTax>
        <ram:SpecifiedTradeSettlementLineMonetarySummation>
          <ram:LineTotalAmount>4.39</ram:LineTotalAmount>
        </ram:SpecifiedTradeSettlementLineMonetarySummation>
      </ram:SpecifiedLineTradeSettlement>
    </ram:IncludedSupplyChainTradeLineItem>
    <ram:ApplicableHeaderTradeAgreement>
      <ram:BuyerReference>42</ram:BuyerReference>
      <ram:SellerTradeParty>
        <ram:Name>Company Name</ram:Name>
        <ram:DefinedTradeContact>
          <ram:PersonName>Full Name</ram:PersonName>
          <ram:TelephoneUniversalCommunication>
            <ram:CompleteNumber>133456</ram:CompleteNumber>
          </ram:TelephoneUniversalCommunication>
          <ram:EmailURIUniversalCommunication>
            <ram:URIID>mail@example.com</ram:URIID>
          </ram:EmailURIUniversalCommunication>
        </ram:DefinedTradeContact>
        <ram:PostalTradeAddress>
          <ram:PostcodeCode>11111</ram:PostcodeCode>
          <ram:LineOne>Street</ram:LineOne>
          <ram:CityName>City</ram:CityName>
          <ram:CountryID>DE</ram:CountryID>
        </ram:PostalTradeAddress>
        <ram:SpecifiedTaxRegistration>
          <ram:ID schemeID="VA">DE123456789</ram:ID>
        </ram:SpecifiedTaxRegistration>
        <ram:SpecifiedTaxRegistration>
          <ram:ID schemeID="FC">Tax Number</ram:ID>
        </ram:SpecifiedTaxRegistration>
      </ram:SellerTradeParty>
      <ram:BuyerTradeParty>
        <ram:ID>42</ram:ID>
        <ram:Name>First name Last name is to long for this very short line</ram:Name>
        <ram:SpecifiedLegalOrganization>  
          <ram:ID schemeID="0088">ATU11864701</ram:ID>
          <ram:TradingBusinessName>Company name</ram:TradingBusinessName>
        </ram:SpecifiedLegalOrganization>
        <ram:PostalTradeAddress>
          <ram:PostcodeCode>12345</ram:PostcodeCode>
          <ram:LineOne>Street 1</ram:LineOne>
          <ram:CityName>City</ram:CityName>
          <ram:CountryID>AT</ram:CountryID>
        </ram:PostalTradeAddress>
        <ram:SpecifiedTaxRegistration>
          <ram:ID schemeID="VA">ATU11864701</ram:ID>
        </ram:SpecifiedTaxRegistration>
      </ram:BuyerTradeParty>
      <ram:BuyerOrderReferencedDocument>
        <ram:IssuerAssignedID>1</ram:IssuerAssignedID>
      </ram:BuyerOrderReferencedDocument>
    </ram:ApplicableHeaderTradeAgreement>
    <ram:ApplicableHeaderTradeDelivery>
      <ram:ShipToTradeParty>
        <ram:Name/>
        <ram:PostalTradeAddress>
          <ram:CountryID>AT</ram:CountryID>
        </ram:PostalTradeAddress>
      </ram:ShipToTradeParty>
      <ram:ActualDeliverySupplyChainEvent>
        <ram:OccurrenceDateTime>
          <udt:DateTimeString format="102">20250321</udt:DateTimeString>
        </ram:OccurrenceDateTime>
      </ram:ActualDeliverySupplyChainEvent>
    </ram:ApplicableHeaderTradeDelivery>
    <ram:ApplicableHeaderTradeSettlement>
      <ram:PaymentReference>42</ram:PaymentReference>
      <ram:InvoiceCurrencyCode>EUR</ram:InvoiceCurrencyCode>
      <ram:SpecifiedTradeSettlementPaymentMeans>
        <ram:TypeCode>58</ram:TypeCode>
        <ram:Information>SEPA credit transfer</ram:Information>
        <ram:PayeePartyCreditorFinancialAccount>
          <ram:IBANID>CH450023053011111199B</ram:IBANID>
          <ram:AccountName>Account Holder</ram:AccountName>
        </ram:PayeePartyCreditorFinancialAccount>
        <ram:PayeeSpecifiedCreditorFinancialInstitution>
          <ram:BICID>PBNKDEFF</ram:BICID>
        </ram:PayeeSpecifiedCreditorFinancialInstitution>
      </ram:SpecifiedTradeSettlementPaymentMeans>
      <ram:ApplicableTradeTax>
        <ram:CalculatedAmount>1.31</ram:CalculatedAmount>
        <ram:TypeCode>VAT</ram:TypeCode>
        <ram:BasisAmount>18.69</ram:BasisAmount>
        <ram:CategoryCode>S</ram:CategoryCode>
        <ram:RateApplicablePercent>7.00</ram:RateApplicablePercent>
      </ram:ApplicableTradeTax>
      <ram:SpecifiedTradePaymentTerms>
        <ram:Description>Zahlbar sofort ohne Abzug.</ram:Description>
        <ram:DueDateDateTime>
          <udt:DateTimeString format="102">20250321</udt:DateTimeString>
        </ram:DueDateDateTime>
      </ram:SpecifiedTradePaymentTerms>
      <ram:SpecifiedTradeSettlementHeaderMonetarySummation>
        <ram:LineTotalAmount>18.69</ram:LineTotalAmount>
        <ram:ChargeTotalAmount>0.00</ram:ChargeTotalAmount>
        <ram:AllowanceTotalAmount>0.00</ram:AllowanceTotalAmount>
        <ram:TaxBasisTotalAmount>18.69</ram:TaxBasisTotalAmount>
        <ram:TaxTotalAmount currencyID="EUR">1.31</ram:TaxTotalAmount>
        <ram:GrandTotalAmount>20.00</ram:GrandTotalAmount>
        <ram:TotalPrepaidAmount>0.00</ram:TotalPrepaidAmount>
        <ram:DuePayableAmount>20.00</ram:DuePayableAmount>
      </ram:SpecifiedTradeSettlementHeaderMonetarySummation>
    </ram:ApplicableHeaderTradeSettlement>
  </rsm:SupplyChainTradeTransaction>
</rsm:CrossIndustryInvoice>```

@hillebra
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And please also check the following situation, which is probably due to the fact that a company calculates gross prices for its products (wants round final prices to customers).

Exemplary invoice values:

  <ram:ApplicableTradeTax>
    <ram:CalculatedAmount>12.65</ram:CalculatedAmount>
    <ram:TypeCode>VAT</ram:TypeCode>
    <ram:BasisAmount>66.55</ram:BasisAmount>
    <ram:CategoryCode>S</ram:CategoryCode>
    <ram:RateApplicablePercent>19.00</ram:RateApplicablePercent>
  </ram:ApplicableTradeTax>
  <ram:SpecifiedTradeSettlementHeaderMonetarySummation>
    <ram:LineTotalAmount>66.55</ram:LineTotalAmount>
    <ram:ChargeTotalAmount>0.00</ram:ChargeTotalAmount>
    <ram:AllowanceTotalAmount>0.00</ram:AllowanceTotalAmount>
    <ram:TaxBasisTotalAmount>66.55</ram:TaxBasisTotalAmount>
    <ram:TaxTotalAmount currencyID="EUR">12.65</ram:TaxTotalAmount>
    <ram:GrandTotalAmount>79.20</ram:GrandTotalAmount>
    <ram:DuePayableAmount>79.20</ram:DuePayableAmount>
  </ram:SpecifiedTradeSettlementHeaderMonetarySummation>

The price of one single item on the invoice is 79.20 euros (gross). This results in a net price of 66.55 euros (79.20 € / 1.19 = 66.5546... € = 66.55 € rounded) and a tax (19%) of 12.65 euros (79.20 € - 66.55 €).

In my opinion, the calculation is correct and other validators do not object to this either. However, Mustang reports the following error and aborts:

org.mustangproject.Exceptions.ArithmetricException: Could not reproduce the invoice. Payable total in XML is 79.20, but calculated total is 79.19 with tax basis 66.55 and with positions 66.55 = 66.55

Can this be remedied? Or at least: Is it possible to bypass this (so that no fatal error will be raised = stop) or disable this check?

@jstaerk
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jstaerk commented Mar 31, 2025

@robertholfeld I'm closing this because the invoice is entirely correct, if you invoice 18,69 with 7% VAT that amounts to 19,9983€ which is correctly rounded as specified in EN16931 to 20€.
@hillebra please note that "round final prices to customers" is actually a feature request, which is in specification by both a workgroupf of the EN16931 and from FeRD.

Sorry guys but I cant provide that feature before it is specified and actually allowed :-(

@jstaerk jstaerk closed this as completed Mar 31, 2025
@robertholfeld
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@jstaerk I can not follow you. The gross price of the invoice is 19.99€ not 20€.
For example if you buy all items of the invoice individually so that you have 4 invoices with values of 3.40 €, 4.48€ 7.41€, 4.70€ then you have also payed 19.99€.

It should not make a difference of the price if i pay the products within one invoice or multiple invoices.

With your rounding at the end its also not possible to cancel single positions of this invoice because then you get additional rounding problems.

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@robertholfeld @jstaerk @hillebra