Concept of fraction adjustment in A.S.I.A.

Outline

When an amount is input on the A.S.I.A. screen in standard currency or the entry currency, the tax amount is calculated according to the tax rate and tax type (internal/external), which are setup for taxable types.  At that time, the fraction process is different depending on the amount and the currency.
The following shows related settings.

Refer to detailed calculation procedures for internal/external taxes in the [Concept of VAT control in A.S.I.A.].

Fraction adjustment (sales/purchase tax)

The tax fraction adjustment method is selected from "Revaluate," " Omit" and "Round off." 
The fraction adjustment method is set for sales tax (accounting subsystem, claims subsystem, sales control subsystem) and purchase tax (accounting subsystem, debt subsystem, purchasing control subsystem).  When setting the [Parameter setup] from the [System custodian module], the following applies to the sales/purchase tax process.

• Accounting, receipts/debts entry, settlement system (Settling adjustment entry, etc.)
  This depends on the selected "Tax type" from A/C // Sub A/C master.
  
  When A/C // Sub A/C is set for "Sales," it is according to "Fraction adjustment (Sales tax)."
  When A/C // Sub A/C is set for "Purchase," it is according to "Fraction adjustment type (Purchasing tax)."
• Sales
  This should be according to the "Fraction adjustment (Sales tax)."
• Purchase, investment securities, lease management (Object entry)
  This should be according to the "Fraction adjustment type (Purchase tax)."
• Deferred account control
• For [Deferred account entry (prepaid expense)], it should be according to "Fraction adjustment type (purchasing tax)."
• For [Deferred account entry (deferred revenue)], it should be according to "Fraction adjustment (sales tax)."
• For auto-journalization depreciation, it should be rounded off.

Deferred tax accounting fraction adjustment

The fraction adjustment method with the legal effective tax rate for deferred tax accounting is set in the [Parameter setup] from the [System custodian module] separately from the above.

Fraction adjustment (FC)

When calculating with a foreign currency, the standard amount is calculated automatically and select the fraction adjustment method from "Revaluate," "Omit," and "Round off."
When setting the [Parameter setup] from the [System custodian module], it applies to calculation of all foreign currency.

One decimal place adjustment

When a currency that does not use numbers after the decimal like Japanese yen becomes a standard currency, it is possible to set foreign currency fraction adjustment, which is done in the first decimal place.

• When fraction adjustment is done at the first decimal place
  Fraction adjustment (FC) is done at the first decimal place.  So, the initial display after the decimal of the standard amount is ".00."  However, the amount after the decimal is not displayed for the general accounting module whole entry and voucher approval, which are entered directly as journal data.
• When fraction adjustment is not done at the first decimal place
  Fraction adjustment (FC) is done at the third decimal place.

The following shows a fraction adjustment sample for standard currency conversion and standard tax amount conversion when entering uncollected control module claims.
 

When setting the [Company setup] from the [System custodian module], it applies not only to all foreign currency conversion for the standard amount, but also applies to the decimal place of fraction adjustment for the following amount calculations (only when the currency is a standard currency). 

• Tax calculation
  The following shows a tax fraction adjustment sample for a standard currency when entering uncollected control module claims.
  
• Legal effective tax rate conversion for [Execute deferred tax accounting] from the deferred tax accounting module
• Payment interest calculation for [Borrowings entry] from the borrowings control module
• Depreciation calculation and depreciation pro rata for the fixed assets module and the deferred account control module
• Absorption amount pro rata for the absorption processing module

Fraction adjustment for the amount pro rata from the absorption processing module

A fraction that is from when the absorption amount is calculated for each detailed row of the absorption journal is adjusted by selecting the fraction adjustment method (one from "Revaluate," "Omit," "Round off") on the [Absorption journal] tab of the [Register absorption pattern].  The difference from the fraction adjustment is adjusted in row No.1 of the absorption standard.