Service Tax Reversal Claim Entries Not Generated After Making Payment To Supplier (Doc ID 2125731.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for India - Version 12.2.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.3 version, Service Tax Setups - General

ACTUAL BEHAVIOR
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Service tax reversal claim entries not generated after making payment to supplier

EXPECTED BEHAVIOR
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Service tax reversal claim entries should get generated after making payment to supplier

STEPS
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The issue can be reproduced at will with the following steps:
1. (N)->India Local Payables.
2. Create a Manual AP invoice with Service tax.(100% recoverable )
Example : Invoice date 10-dec-2015 , GL date : 18-Mar-2016
3. Create accounting
4. After running India service tax processing concurrent program balance has transferred from interim recovery to recovery account from category “ Register India”
5. As per law from invoice date has completed 3 months and so reverse the invoice from service tax reversal process.
6. After completing the reversal process,run India service tax processing concurrent program and balance has transferred from recovery to interim recovery account from category “ Register India”
7. Now make the PAYMENT for the invoice.
10. Create Accounting.
11. Run India - Service Tax Processing
12. Observe that system is NOT generating the accounting entries 'Dr.Recovery A/c To, Cr.Interim Recovery A/c'

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot take credit of the service tax

Cause

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