VAT PAYABLE = VAT CALCULATION TURNOVER X VAT RATE   : Vat payable caluculation           

Hi Gurus

For the output tax Calculation, VAT payable amount calculation is based on VAT Calculation turnover as shown below

VAT Payable =

SAP system cannot use the exact provided formula as above. Hence, we convert the formula into the percentage.

SAP system can take up to 3 decimal places for VAT percentage only.

Net amount/Base amount = $1

VAT RATE = 5%

=> VAT payable = ($1*5%) / (1 - 5%) = 0.052631579 = 5.263

But Vietnam client not agreed to maintain 5.263 instead of maintaining formula in SAP.

clearly mentioned that :  No VAT rate 5.263% was promulgated by local Law.

So, please let me know if we can maintain above mentioned formula in system to get VAT amount.

Pls also let us know if we can calculate Vat payable by using enhancement/program for this requirement ?

Thanks,

John