E1: 42: Tax on Interbranch / Intercompany Orders - Setup Scenario for Resell/End User/Accrued Taxes
(Doc ID 2786136.1)
Last updated on JUNE 29, 2021
Applies to:JD Edwards EnterpriseOne Sales Order Management - Version 9.2 and later
Information in this document applies to any platform.
1. Distribution center (DC) that sells to customers, distributers and transfers product to our branches.
Do not pay sales tax with purchase products because items are purchased for resell and customers are charged tax at the time of the sale.
2. When branches consume the products that are transferred to them from the DC they don’t directly sell it to a customer, therefore, tax must be accrued to pay to the states in the process. The business is currently capturing this at the time of the ST and actually charging the branches sales tax on that order. For the OT side the tax is being expensed to the inventory account as part of the cost of the goods. The issue can either be with JDE taxes and/or Vertex Q series and ideas for complete set up apply to either.
- Sales tax is higher in some states than use tax.
- Should be accruing consumers use tax, but because this is a sale (ST), Vertex and/or JDE is returning sales tax. Vertex is involved to assist with possibilities from their side but they can see no way to update this and state the tax should be accruing on the e OT side.
- To accrue on the purchasing side (OT) you have to do a voucher, but because these are all intercompany transactions there is no invoice or voucher match.
Is there a viable process in JDE that can accommodate the desired results?
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document