E1: 42: AAI 4250 Wrongly Written at Sales Update with Tax Explanation Code = V and VAT Expense (Doc ID 2081636.1)

Last updated on AUGUST 08, 2017

Applies to:

JD Edwards EnterpriseOne Sales Order Management - Version 9.1 and later
Information in this document applies to any platform.

Symptoms

When Sales Update (R42800) process a sales order with tax explanation code = V (VAT Tax) and Tax Area set as 'VAT Expense' it writes Distribution Account 4250 (Tax Liability). No amount should be written to distribution AAI.
When a tax rate area has a line with VAT Expense checked it means that the VAT Expense percent of the Tax Amount is not to be paid to the Tax Authority.
If the VAT Expense is 100% this means no tax is owed to the Tax Authority for those transactions.

Cause

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