SWACHH BHARAT CESS : SERVICE TAX DEBIT IN ITEM EXPENSE ACCOUNT INSTEAD OF INTERIM RECOVERY ACCOUNT (Doc ID 2082110.1)

Last updated on NOVEMBER 25, 2015

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, Service Tax - P2P

ACTUAL BEHAVIOR  
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Service Tax distribution is created with the Item Expense account instead of Interim Recovery Account  

EXPECTED BEHAVIOR
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Service Tax distribution should be created with Service tax Interim Recovery Account.

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

1. Create a PO with multiple distribution.
2. Approval level to '2-Way' and Invoice match option to 'PO'
3. Accrue at receipt not checked.
4. Distribution = Expense.
5. Add recoverable service taxes and approve the same
6. Create an invoice and match the same to PO

BUSINESS IMPACT
-----------------------------
The issue has the following business impact:
Due to this issue, users cannot create the invoices as the accounting is wrong.

Cause

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