For a PO In Foreign Currency, Tax Accounting Calculation Is Not Based On Distribution Conversion Rate in Tax Tables but is In Subledger Accounting (Doc ID 2164019.1)

Last updated on NOVEMBER 08, 2016

Applies to:

Oracle Purchasing - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

 

When a PO is created in a foreign currency, and a different conversion rate/date is put on the Heade and Distributions the Tax Amount flowing to GL uses the PO Header Rate/Date while the Subledger Accounting uses the PO Distribution Rate/Date.

 

Steps to replicate

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  1. Create a currency conversion rate on 4/29 for ARS to USD for 10/1
  2. Create another currency conversion rate on 4/30 for ARS to USD for 20/1
  3. Create a new po-in the header use Rate Date 4/29 and the PO is ARS currency at 10/1
  4. Create at least 1 distribution with Rate Date 4/30 for ARS to USD using 20/1
  5. Save and approve po
  6. Receive the PO
  7. Navigate to "Receiving --> Receiving Transactions Summary"
  8. Query the PO
  9. Click Transactions
  10. With Cursor on Receive Line click Tools-View Accounting in top menu
  11. Review the conversion rate to primary currency, in this example it's 20/1
  12. Run Query now: select TAX_RATE, REC_NREC_TAX_AMT, REC_NREC_TAX_AMT_TAX_CURR from zx_Rec_nrec_dist where trx_line_dist_id = '&PODISTID'; --insert your distribution id here
  13. Review the fields returned-in this example the 10/1 rate is used as taxable amount of 4 is converted to 40 functional currency amount (20/1 would be 80 functional currency amount)



 

Cause

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