R12 Incorrect Account For Discount When Using Discount Method Prorate Tax

(Doc ID 2041078.1)

Last updated on AUGUST 20, 2015

Applies to:

Oracle Payables - Version 12.0.0 and later
Oracle Subledger Accounting - Version 12.0.0 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Accounting Issues in AP

ACTUAL BEHAVIOR
---------------

Payables automatically prorates a percentage of the discount amount across the tax distributions.Payables only prorates the percentage of discount amount equal to the percentage of your tax distributions.

Payables credits the remaining discount amount to the Expense Account for NON PO Invoices.

EXPECTED BEHAVIOR
-----------------------
Payables automatically prorates a percentage of the discount amount across the tax distributions. Payables only prorates the percentage of discount amount equal to the percentage of your tax distributions.

Payables credits the remaining discount amount to the Discount Taken account you enter in the Financials Options window.

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

 

A. Setup configuration:

1. The Discount Taken Account setup in the Financials Options Accounting tab is 123XX.311602.99999.640951.99999


2. The setup in Payables Options is Automatic Offset Method:Account and Discount Method:Prorate Tax

 

B. Invoice and Payment:


1. Enter an invoice with the following distributions:

ACCOUNT ACCOUNT TYPE AMOUNT

123XX.311601.11201.620411.11901

ITEM 1000
123XX.311601.11201.620411.11901 NONREC_TAX  0
123XX.311601.11201.620411.11901 NONREC_TAX 0
123XX.311601.00000.123751.91901 REC_TAX 190
     
     

2. Pay the invoice and account the payment


3. Payables credits the remaining discount amount to the Expense Account for NON PO Invoices.

ACCOUNT ACCOUNT TYPE AMOUNT
123XX.311601.00000.111101.91901 CASH_CLEARING  1166.2
123XX.311601.00000.123751.91901 DISCOUNT  3.8
123XX.311601.11201.620411.11901 DISCOUNT   20
123XX.311601.00000.210101.11901 LIABILITY  1190
     
     
     
     

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot create correct accounting for discount.

Cause

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