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E1: FIN: FAQ - Frequently Asked Questions Regarding Tax Set Up Within Accounts Payable and Accounts Receivable Within EnterpriseOne (P0022, P4008, P0004A, R0018P, P73GE0) (Doc ID 1413879.1)

Last updated on MARCH 06, 2023

Applies to:

JD Edwards EnterpriseOne Accounts Receivable - Version XE and later
JD Edwards EnterpriseOne Accounts Payable - Version XE and later
JD Edwards EnterpriseOne General Ledger - Version 9.1 to 9.1 [Release 9.1]
Information in this document applies to any platform.


This document discusses frequently asked questions regarding tax set up within Accounts Payable and Accounts Receivable in Oracle JD  Edwards EnterpriseOne Financial system.

Information Center: JD Edwards EnterpriseOne Accounts Payable Product > Information Center: Using the JD Edwards EnterpriseOne Accounts Payable Product > AP Overview and Setup &gt1413879.1

Questions and Answers

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In this Document
Questions and Answers
 Tax Rate/Area (P4008) Questions
 Question 1: How is Harmonized Sales Tax (HST) configured to include rebates for Non Profit companies?
 Question 2: Can the HST be configured to use separate GL Accounts?
 Question 3: Which Tax Explanation Codes are available for the HST rule for non-profit companies?
 Question 4: How is HST configured for self assessed taxes?
 Question 5: Does JD Edwards EnterpriseOne have a report to provide rebate details?
 Question 6: Is it possible to change the Expiration Date for a Tax Area?
 Question 7: How are tax rates changed for a Tax Area?
 Question 8: Is it possible to capture the amount of the Use tax in a different account?
 Question 9: Is it possible to put a cap on a Tax Rate/Area?
 Question 10: Is it possible to calculate two different non-recoverable percentages, one each over a separate line of the Tax Rate/Area?
 Question 11: Why does changing the tax rate percentage in a Tax Rate/Area catching create integrity problems?
 Question 12: Is it possible to set up default Tax information based on account?
 Question 13: If the expiration date is blank, a date five years from the current date will default. Where is this coming from?
 Question 14: The client requires to enter a foreign invoice, where the vat tax amount is not payable to the supplier, but to the Government. This would indicate to use self assessed explanation code of U, but the vat tax amount should not be expensed, as it is recoverable and will thus contra with the credit, is this possible?
 Question 15: Is there a z-file process for uploading data to the Tax Rate/Area (F4008) table?
 Question 16: Why is the Item Number (ITM) field uneditable when revising an existing tax rate area in  Work With Tax Rate/Areas program (P4008)?
 Question 17: When posting (R09801) an A/R invoice with one pay item or an A/P voucher one pay item, both with tax, why does the post cause a small rounding difference in the calculated tax?
 Question 18: Is it possible to setup different Tax Authorities (TA1, etc.) per Company for one Tax Rate/Area (TXA1) in Tax Rate / Areas (P4008)?
 Tax Explanation Code (P0004A) Questions
 Question 1: If the blank tax explanation code is removed from UDC table 00/EX, the system triggers hard errors in multiple transaction entry applications, why?
 Question 2: Vouchers using B or U taxes cause an error when running the General Ledger Post (R09801), why?
 Question 3: Voucher tax entries created from a Purchase Order and using Tax Explanation Code C are posted to the wrong account, why?
 Question 4: Posting a redistributed logged voucher with an additional expense line that uses the Track Taxes functionality and a Blank value for its Tax Explanation Code, fails with an out of balance error, why?
 Question 5: The VAT Exception Report by Tax Area (R0018P7) is showing a voucher as having a variance when using the V+ Tax Explanation Code in conjunction with compound tax, why?
 Question 6: When posting vouchers with a Tax Explanation Code of E (Exempt), records are being created in the Taxes Table (F0018) even though Processing Option 1: Update Tax File on the Taxes tab of the General Ledger Post (R09801) is set to 2, why?
 Question 7: While trying to post a voucher with Tax Explanation Code S, the system triggers error: 'AAI Missing for a specific GL Offset', why?
 Question 8: Posting a voucher with Tax Explanation Code B and a Tax Rate Area with GST and PST fails with the following error: Intercompany AAI setup and AccountPayable VoucherPost, why?
 Question 9: A voucher entered with Tax does not populate the Tax Explanation Code or Tax Rate Area in the General Ledger (F0911), why?
 Question 10: Posting a voucher with Use tax and a Tax Rate Area with GST and PST lines fails with the following error: "Intercompany AAI" setup and "AccountPayable VoucherPost", why?
 Question 11: Journal entries are incorrect after posting a voucher with a Tax Explanation Code of C and a Tax Rate Area with a total Tax Rate of zero percent (e.g. GST portion as -10% and PST as +10%), why?
 Question 12: Records are not added to the Taxes table (F0018) when posting a voucher with a Tax Explanation Code of S and a Tax Rate Area with a total Tax Rate of zero percent, why?
 Question 13: Records are not added to the Taxes Table (F0018) when posting a voucher with a Tax Explanation Code of C and a Tax Rate Area with a total Tax Rate of zero percent, why?
 Question 14: Why does the system always use AAI item PT (blank) and ignore the GL Offset for Use taxes?
 Question 15: Records entered into the Taxes table (F0018) with a Tax Explanation Code of S are automatically flagged as Printed and therefore not included on the GST and PST Tax Report (R0018P8), why?
 Question 16: Why does the U Tax Explanation Code for a single tax authority with multiple offsets only create one entry?
 Question 17: Why does the system ignore the compound method to calculate taxes when using the Tax Explanation Code V?
 Question 18: Why must the Tax Explanation Code on the GL Distribution form (in the Standard Voucher Entry program) need to be manually entered instead of automatically populating from the Supplier Master information?
 Question 19: Is it possible to leave tax information on a voucher blank during Standard Voucher Entry (P0411) when default information is provided in the Supplier Master (P04012)?
 Question 20: Why are the GST and PST on a single Tax Rate Area being posted to one GL Account instead of posting to two different GL Accounts when using the Tax Explanation Code V?
 Question 21: Do vouchers with a Tax Rate Area of zero percent update the Taxes table (F0018)?
 Question 22: How to enter a voucher for taxes only using tax explanation codes ST, VT, BT, and CT?
 Tax Table F0018 and Report (F0018/R0018P/R0018R) Questions
 Question 1: Can the Populate Tax Reporting Reposit (R0018R) process all possible combinations in the Taxes table (F0018)?
 Question 2: How does the R0018P processing option #1 "flag records have been read" option work when running this report?
 Question 3: The update F0018 (Tax File) flag on the post version was turned off. How do we get the tax records added?
 Question 4: Is there foreign tax fields in the F0018 to run a report over?
 Question 5: Is there a specific order in which the tax detail report (R0018P) and the Update Tax Reconciliation Repository (R0018R) need to be run?     
 Question 6: Which data is being selected by the R0018R and R0018P?
 Question 7: Why does the Tax Detail Report (R0018P) appear to be ignoring its processing option and data selection settings?
 Question 8: Why does the system return a User Defined Code Error on the Document Number (DOCO) field when adding a tax record with a V Explanation Code in Tax File Revisions (P0018)?
 Question 9: Is it possible to delete  or update a line from P0018?
 Question 10: If a tax rate area is set up to have a certain percentage that is non-recoverable, the report still shows the full vat amount. Why is that?
 Question 11: Why might the Tax Detail Report (R0018P) fail to print certain expected tax transactions?
 Vertex (P73GE0) Questions
 Question 1: Getting Error on Geocode when entering either a invoice or voucher, why?
 Question 2: Getting Error on P73GEO when entering State = MI and County = WAYNE, why?
 Question 3: Our documentation indicates that vertex will not use tax explanation codes C or V to calculate Canadian GST as a input tax credit - that is do not expense GST as a use tax but post it to the asset account defined in the PT AAIs. Can you confirm? If this is the case, is there documentation or any work around?
 Question 4: What Tax codes are used for Vertex?
 Question 5: What Series does Oracle Software Support currently support?
 Question 6: When entering in a Voucher with Vertex and the gross amount field is different from the Taxable amount field, the system changes the gross amount to match the Taxable amount when it calculates the tax, why?
 Question 7: Does the Supplier or Customer Master validate the tax/rate area field with the Vertex database when you just open the form?
 Question 8: How is the geocode determined and tax calculated when entering vouchers?
 Question 9: Does Vertex utilize Branch/Plant Constants (P41001) to determine what geocode to use in Accounts Payable or Accounts Receivable?
 Tax Capture by Pay Item and Account Questions
 Question 1: We activated the Balance GL Distribution by Pay Item and Tax constant, and then de-activated it. What are the possible consequences?
 Question 2: We activated the Tax capture by Pay Item and Account functionality as per the beginning of last period. What happens to any transaction prior to that date?
 Question 3: We activated the Tax capture by Pay Item and Account functionality, how can we improve table input/output performance?
 Question 4: We have G/L accounts that are marked as taxable accounts; these accounts have default tax/rate areas attached to them. Does this matter for the Tax Capture by Pay Item and Account functionality?
 Question 5: What happens to the track taxes flag on an application?
 Question 6: Can we create our own reports for the Pay Item and Tax information?
 Question 7: Will Tax Capture by Pay Item and Account work for splits and installments?
 Question 8: Is there an integrity report to check for missing tax records in the Taxes table (F0018) using the F03B11 or F0411?
 General Tax Set Up Questions
 Question 1: Can Tax Tolerance rules based on percentage works for tax rate area with ZERO rate and currency with ZERO decimals? If not, why? Eg Tax Tolerance is setup for percentage.  If Tax Rate is entered with zerio percentage during transaction entry, applicate only prompt warming message regardless the Tolerance amount calculated is exceeded warming or error limit.
 Question 2: How is the Tax Rate/Area populated on a voucher or invoice?
 Question 3: Is it possible to split tax accrual into different accounts based on a voucher's company?
 Question 4: How should the AAI item PT be configured for Tax Explanation Code U?
 Question 5: Is there a setup to validate the Tax Rate/Area and Tax Explanation Code while entering a transaction?  For Example if the Tax Explanation Code is V (Vat) then only the VAT Tax Area can be selected?
 Question 6: it possible to set up the system to round the tax amounts up or down?
 Accounts Payable Withholding Tax (R04580) Questions
 Question 1: Is it possible to calculate withholding tax from the Taxable Amount on a voucher and not from the Gross Amount?
 Question 2: Is it possible to set up a supplier to have two different withholding tax rates for different tax authorities?
 Question 3: What is the purpose of Processing Option 2: GL Account ID on the GL Offset tab of Calculate Withholdings (R04580)?

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