The Withholding Tax Is Not Calculated In The VAT Tax Line for Colombia (Doc ID 1622896.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for the Americas - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Colombian Payables


The withholding tax is not calculated on the VAT tax line.

Expect to have the withholding tax calculated to the invoice tax line type.

The issue can be reproduced at will with the following steps:

1. Responsibility: Oracle Payables - Colombia localization
2. Path: Invoices -> Entry -> Invoices
3. Create an invoice and save.
4. Validate the invoice.

The withholding tax is not calculated updating tax line applicability as yes and keeping the remaining options as no.

In this case, the withholding tax is calculated as zero.
The requirement is to calculate withholding tax on the tax line type.

Note: The issue occurs only when the tax code is created using amount ranges. It works fine using flat rate.

Workaround:
Using "Item Applicability = Yes and Tax Line applicability = Yes",
then system is able to calculate Withholding on VAT,
but it also calculates Withholding on the item line which is not required.

The issue has the following business impact:
Due to this issue, users cannot calculate the withholding tax on tax lines.



Cause

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