VAT-Unclaim: On Unclaiming of VAT, system makes it "Marked for Non Claimable" and it result no further accounting entry. (Doc ID 2007132.1)

Last updated on MARCH 08, 2017

Applies to:

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

Symptoms

On : 12.1.3 version, Value Added Tax - P2P

ACTUAL BEHAVIOR
---------------
On un claiming of VAT, system makes it "Marked for Non Claimable" it result no further entry.

EXPECTED BEHAVIOR
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Un claimed VAT amount should be treated as a Non Recoverable tax amount.

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

(N)->India Local Purchasing
1. Create Receipt with VAT taxes.
2. Unclaim the VAT tax from the form 'VAT claim form'.
3. Observe that the receipt is still marked as '"Marked for Non Claimable' and further processing not happening.


BUSINESS IMPACT
-----------------------
The issue has the following business impact:
1. Users unable to Unclaim the VAT there by resulting into wrong accounting entries.
2. Unable to arrive at the exact VAT liability thereby affecting the statute settlement.

Cause

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