R12.1:JL:AP: Multiple Tax Rate Are Not Getting Applied In Argentina Withholding Tax Localization

(Doc ID 2333254.1)

Last updated on NOVEMBER 28, 2017

Applies to:

Oracle Financials for the Americas - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Argentina Payables

Multiple withholding taxes are not applied on the invoice.
Expect to have all withholding taxes applied on the invoice.

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

1. Responsibility: Oracle Payables - Argentina localization
2. Path: Invoices -> Entry -> Invoices
3. Create an invoice and save.
4. Validate the invoice.
5. Pay the invoice.

Multiple withholding taxes are not applied on the invoice.

Requirement: Business need to apply 3 different rates created under same with holding tax type.
Defined 3 tax rates ( 2% , 6% and 10.5 %) under same Withholding Type and assigned to the same supplier
under supplier withholding tax applicability setup.
Only one tax rate is getting applied to the invoice (primary).

NOTE: The issue persists selecting the ReDefault button in Tools -> Invoice Withholding Distributions (JLZZPIDW 12.0.7.12010000.4 )

6. Setup

a) Withholding Tax Type

Withholding Tax Type: AR-Servicos
Jurisdiction Type: Federal
Taxable Base Amount Basis: Invoice
Minimun Taxable Amount Level: Category
Minimum Withheld Amount Level: Withholding Type
Minimum withheld Amount:90.00
Tax Authority: ADMINISTRADORA...
...
Province:
...
Cumulative Payment Applicable: Selected
...

b) Tax Code

Tax Code: AR_SER@2%
Rate Structure: Amount Ranges
Period Basis: Period
Amount Basis: Gross Amount
Tax Rates
Type: Standard
Amount Range From: 0.00
To
Rate: 2

Additional Information for Argentina

...
Withholding Type: AR-Servicos
...
Item Line Type Applicability: Yes
Freight Line Type Applicability: No
Miscellaneours Line Type Applicability: No
Tax Line Type Applicability: No
Minimum Taxable Base Amount: 30000
Minimum Withheld Amount:
Adjustment Minimum Base: S
Cumulative Payment Applicable: Yes
...


Tax Code: AR_Ser@6%
Same information...
Rate: 6%
Minimum Taxable Base Amount: 0

Tax Code: AR_Ser@10.5%
Same information...
Rate: 10.5%
Minimum Taxable Base Amount: 0

c) Supplier

Supplier: CER SAN JUAN SRL

Withholding Tax Type: AR-Servicos
Subject Indicato: Selected

Withholding Tax Codes

Tax Code: AR_SER@2% (Primary)
Tax Code: AR_Ser@6%
Tax Code: AR_Ser@10.5%

When the invoices is paid, only the primary tax code is applied.

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot apply some tax rates to the invoice.

Cause

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