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Tax Payment FX Issue (Doc ID 2576876.1)

Last updated on JULY 02, 2020

Applies to:

Oracle Fusion Tax Cloud Service - Version 11.13.19.04.0 and later
Information in this document applies to any platform.

Goal

When we create an AP Invoice to pay a tax authority, we net output tax against input tax, the remainder is what we pay the tax authority.
EG:
AR: We have 200 AR Invoices for the last month, total output VAT of EUR 2000 = USD 2256.80 for our USD Secondary Ledger
AP: We have 100 AP Invoices for the last month, total input VAT of EUR 800. = USD 902.72 for our USD Secondary Ledger

We need to pay the tax authority EUR 1200. The problem is, when it posts to the secondary USD leger, the total is USD $1411.02 instead of $1454.08 because of exchange rate differences from time of tax only invoice creation vs actual invoices we brought in during the month. The amount will be correct in our GBP Primary Ledger, but our USD Secondary Ledger amount will not be cleared by the invoice, and there will be this residual fx amount of 43.06. How do we do this transaction in a way where there won’t be this residual FX, and how do we clear this if it does happen?
 

Solution

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In this Document
Goal
Solution
References


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