R12:GST:JAI:AP: Incorrect Accounting For Receipt Matched AP Invoice (Doc ID 2286729.1)

Last updated on JULY 14, 2017

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, GST Payables

There is a double accounting in Interim Recovery Account.

Expect to see the correct accounting


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

1. Responsibility: Oracle Payables - India GST
jai_tax_determination.plb 120.188.12010000.79

2. Path: Invoices -> Entry -> Invoices
3. Query an invoice

There is a double accounting in Interim Recovery Account.

Same issue of accounting happening for RTN transactions as well.
RTN Accounting is incorrect for AP Invoice.
Instead of crediting AP Accrual, it is crediting to Interim Liability Accounts.

4. For example:

Create a PO, attached GST taxes and approved the PO.
Create a receipt against the PO.
Receiving transaction processor is completed normal and accounting entry for receipt is transferred to GL
(for tax as well as material).

Following accounting entry is generated for Source Financial India:

CGST Interim Recovery A/c Dr. 57.50
SGST Interim Recovery A/c Dr. 57.50
AP Accrual Account Cr. 115.00

AP Invoice is booked by matching against Receipt. Following Entry is generated:

AP Accrual Account Dr. 2300.00 (Material )
CGST Interim Recovery A/c Dr. 57.50 (GST )
SGST Interim Recovery A/c Dr. 57.50 (GST)
AP Vendor Liability Cr. 2415


The issue has the following business impact:
Due to this issue, users cannot finish the tests

Cause

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