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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 FEBRUARY 20, 2019

Applies to:

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



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


  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)


NOTE: In the images below and/or the attached document, user details / company name / address / email / telephone number represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance). Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.









 NOTICE: Subledger Accounting shows conversion of 20/1 ( 20 * 1000 ARS - 20,000 dollars plus tax rate of .04 so we get 20,080 on the receipt accounting)




Execute this Query and notice the Currency Conversion Rate being used is 10/1 not 20/1






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