R12: AP: Subledger Accounting (SLA) Setup for Tax Accounts (Doc ID 1914253.1)

Last updated on JANUARY 16, 2025

Applies to:

Goal

Business justification

The company can have multiple legal entities within a single jurisdiction which require different RECOVERABLE tax treatment and accounting within a single operating unit and a single ledger. As a consequence, the restriction within EBTax which uses a single account string would require thousands of rules to satisfy the business need.

Case 1:

How can add accounting derivation rules for the cost center and company segments (Balancing Segment) to be generated using subledger accounting (SLA) for tax accounts? 

For "Item Expense", the cost center and company segments are correctly generated.

The following setup has been tried:

1. Account Derivation Rule for Journal Line Type = "Recoverable Tax" when set to Segments = All Segments,  Rule Name = Recoverable Tax Account. The recoverable tax code has valid code combination for Tax Recoverable/Liability Account, but this is not being picked up and create accounting fails to account with error 95353
   
   
2. When the Account Derivation Rules are reset to - Segments = All Segments,  Rule Name = Invoice Distribution Account, then the Create Accounting completes successfully but this does not generate the desired accounting which should be driven from the Recoverable Tax Account.

e.g.

• Event Class = Invoices
• Journal Line Type = Recoverable Tax
• Account Derivation Rules - Segments = All Segments
• Rule Name = Invoice Distribution Account

Case 2:

Created an invoice with AWT. Need to have the AWT account generated, modified, having the same segment 5 for all distributions lines, including AWT line.

The following setup has been tried:

- Having AWT at invoice time

- Journal Line Type (JLT): Witholding Tax not modified

- Trying to add an Account derivation Rules (ADR) for JLT: Liability, Basic:  ADR: Management segment: XXXXXXX / Source Invoice Distribution Account to get the same accounting for all lines for Segment5.

Invoice having 2 lines:
- Item: 01-110-6100-2111-270
- AWT: 01-000-1140-0000-000

The test fails and the AWT account remains the same.

The accounting generated was:

Select Ledger Account Accounting Class Accounted DR Accounted CR
Vision Operations (USA) 01-000-1140-0000-000 Withholding Tax 10.00 Actual Supporting References
Vision Operations (USA) 01-110-6100-2111-270 Item Expense 100.00 Actual Supporting References
Vision Operations (USA) 01-000-2210-0000-000 Liability 10.00 Actual Supporting References ---does not have management segment populated
Vision Operations (USA) 01-000-2210-2111-000 Liability 100.00 Actual Supporting References

Solution

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