E1: 43: Tax Amounts go to PPV Account When There is No Variance (Doc ID 1663850.1)

Last updated on JUNE 07, 2016

Applies to:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version 9.0 and later
Information in this document applies to any platform.

Symptoms

Voucher Match (P4314)

When Use Tax is added during 3-way voucher match, and the Inventory On-Hand Quantity is less than the Voucher Match Quantity, part of the Use Tax amount gets written to a G/L variance account.

The client expects the entire Use Tax amount to get written to the G/L account setup under DMAAI 4350.

The issue can be reproduced at will with the following steps:

  1. User creates a purchase order for a quantity of an inventory item with no tax information populated.
  2. User receives the purchase order for the same quantity, and still there are no taxes.
  3. User sells, or consumes units of the item so that now the Inventory On-Hand Quantity is less than the quantity received on the PO.
  4. User creates a 3-way match voucher, populating Tax Explanation Code U (Use Tax) and a Tax Area on the Voucher, so the Use Taxes are assessed.
  5. The Voucher 3-way match voucher is Posted.
  6. The journal entries created are as follows:
    1.  Debit to Received Not Vouchered Account (AAI 4320) for Amount of the Inventory
    2. Credit to the AP Trade Account (PC AAI) for the Amount of the Inventory
    3. Credit to the Use Tax Purchases Account (PT AAI) for the Amount of the Use Tax
    4. Debit to the Purchase Tax Accrual (AAI 4350) account for most but not all of the Use Tax
    5. Debit to a Variance Account for the balance of the Tax Amount attributed to the quantity of items that was under the quantity of the original receipt.

Cause

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