Ebusiness Offset Tax not Applied to AP Invoice (Doc ID 1623139.1)

Last updated on MARCH 08, 2017

Applies to:

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

Goal

In certain circumstances there is the requirement to add a manual tax line with an offset tax. An example of this requirement is the following:

  DR. Expense 100
  DR. HST Recoverable 13
  DR. HST Non-Recoverable 8 (same as expense)
  CR. HST Recapture (PST Portion of HST) 8
  CR. AP Trade 113

In order to accomplish the following configuration was performed:

  1) Created an offset tax
  2) For the offset tax, create a negative tax rate (called ON_PST_RECAP-->-8%) (100% recovery rate applied)
  3) In the parent tax, created a tax rate called (CA_PST_RECAP2 -->8%) and associated the offset rate to this tax rate.

Then, created an invoice and manually applied the CA_PST_RECAP2 tax line. The positive 8% is charged however, it was expected the -8% line to also appear, but is not. Why?
 

Solution

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