An Invoice With AWT Is Placed On 'AWT Tax Inactive' Hold, Even Though An Active AWT Tax Code With Higher Rank Exists (Doc ID 1480553.1)

Last updated on SEPTEMBER 09, 2016

Applies to:

Oracle Payables - Version 12.0.0 to 12.1.3 [Release 12.0 to 12.1]
Information in this document applies to any platform.

Goal

Setup
1 - Create AWT tax group 'DOT_WH_TAX'. This consists of four tax codes; three of these are inactive (ranked 2: code 'DOT_AWT'; rank 3: code 'DOT_AWT2'; rank 4: code 'DOT_WH_TAX'), leaving one active (ranked 1: code 'AWT_RNR')
2 - Set up Withholding Tax on the Payables Options as below:
(a) Apply Withholding Tax At Invoice Validation Time
(b) Create Withholding Tax At Invoice Validation Time
(c) Withholding Date Basis is Invoice Date
(d) Tax Group = 'DOT_WH_TAX'

Scenario
1 - Create an AP invoice. The AWT tax group 'DOT_WH_TAX' is stamped in the Invoice Withholding Tax field on the Lines tab.
2 - But when validating the invoice, nothing happens. Instead, a hold is applied on the invoice:
Lookup code : AWT ERROR
Hold reason : AWT Tax Inactive - Tax DOT_AWT Group DOT_WH_TAX

In looking at the hold, it appears the AWT tax code being assessed is the AWT code 'DOT_AWT', which is (a) inactive, and (b) ranked 2, i.e. lower than the active AWT code 'AWT_RNR'.
 

Solution

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