What is IP27 Tax Currency Profit? why does it trigger?

Hi Carlo,

Could you please let us know

1. Application Track the error is appearing
2. The error message you have received

Thanks and Best Regards

Madusha

Hi Carlo,

IP 27 Tax Currency Profit or IP26 Tax Currency loss postings are triggered when you use specific currency rate for taxes (define in company level). You might know that in some countries, the authorities release separate currency rates for taxes and IFS Financials allows you to separately record true tax transactions and AP invoice transaction using two rates. IP 26/IP27 is triggered when your tax method is Invoice Entry or Final Posting. Tax currency gain or loss will be calculated as the difference between the Tax Amount the order/invoice Currency Rate and Tax Amount in accounting currency.

In your case I believe that you haven’t defined the IP27/IP26 postings in your company.

Thanks Eranda, Where can I see this setup that allows recording of taxes separately?

Go to Company/Accounting Rule/Currency rate Type Information tab. There is an area where you can define default currency rates types for taxes.

FYI: If you are working with the Asian customers, please note that this is a common requirement in countries like Thailand.This was added to the Core application during APP7 release based on the Thailand requirement. 

Hi Eranda,

My client is from Japan and we don't have this setup for them. 

I suspect this is because of Parallel currency that they using? 

I am not sure about the connection between tax currency gain/loss and parallel currency setup. @Chirantha Can you guess the reason for triggering IP27 when specific tax currency setup false?

IC Thank you.