Taiwanese Input VAT Report Shows Different Taxable Amount For Invoice Applied By Prepayment (Doc ID 2257236.1)

Last updated on MAY 15, 2017

Applies to:

Oracle Financials for Asia/Pacific - Version 12.2.4 and later
Oracle E-Business Tax - Version 12.2.4 and later
Oracle Payables - Version 12.2.5 to 12.2.5 [Release 12.2]
Information in this document applies to any platform.

Symptoms

ZXTWPVAT:Taiwanese Input VAT Report shows incorrect results for invoices with prepayment application and also different results for primary & secondary ledger.

Scenario 1: For invoices with prepayment (with tax) applied with no adjustment of tax
ITEM amount 390
Tax amount 19.5 (5%)
Total 409.5

Invoice num TW17030701
Taxable amount Tax amount Total Amount
Primary Ledger USGAAP 0 0 0
--both taxable and tax amounts are deducted for prepay appl amount and prepay tax amount

Secondary ledger TWGAAP 390 0 390
--taxable amount is not deducted for prepay appl but tax amount is deducted for prepay tax amount

Scenario 2: For invoices with prepayment (with tax) applied with adjustment of tax:
ITEM amount 390
Tax amount 20 (adjusted from 19.5)
Total 410

Invoice num TW17030301
Taxable amount Tax amount Total Amount
Primary Ledger USGAAP 0 0.5 0.5
--both taxable and tax amounts are deducted for prepay appl amount and prepay tax amount

Secondary ledger TWGAAP 390 0.5 390.5
--taxable amount is not deducted for prepay appl but tax amount is deducted
for prepay tax amount

Expect the prepayment amount and prepayment tax amount NOT to be deducted from standard invoice amount since prepayment application is in the nature of advance payment adjustment as such should not reduce the tax liability / tax paid.

Cause

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