For Intercompany Transfers, Sales Rule Is Applied Which Is Incorrect (Doc ID 3017486.1)

Last updated on APRIL 22, 2024

Applies to:

Goal

For Intercompany transfers, Sales rule is applied which is incorrect

1. Create a tax rule for IC VAT reversal with Reverse charge set as Y, and approve the rule
2. Create Intercompany Transfers from KSA to UAE region (Store to Store transfer), Approve the transfer
3. Ship and receive the transfer in receiving store location

Validate the tran_data postings

Sales VAT is getting posted for Intercompany VAT which is incorrect because the Sales Tax code (5-G-SR) and IC VAT reversal VAT code (5-G-RC) are grouped into same TAX GROUP and hence the rule should apply only IC VAT not the Sales VAT.
 

Solution

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