GST - Recovery Rate 50% - Credit Memo GST Amount goes to 100% Recovery instead of 50%

(Doc ID 2372893.1)

Last updated on MARCH 13, 2018

Applies to:

Oracle Financials for India - Version 12.1.1 and later
Information in this document applies to any platform.

Symptoms

Problem Summary:

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Created credit memo on supplier. Applied GST as 18%. In our case tax amount recover should be is 50% i.e. out of SGST/CGST 50% recoverable & 50% are non-recoverable. But in this credit memo case all taxes are going in interim recovery account instead only 50% should go in interim recovery & balance 50%
should go to expense account.

 

Steps :

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  1. Create Tax Rate with 50% Recovery
  2. Create AP Credit memo
  3. Attach the Tax rate
  4. System calculate tax rate bifurcating Recovery /non recovery
  5. On Commit AP invoice distribution will be get saved.
  6. Check the distribution account
  7. Recovery porting should hit Tax Recovery account
  8. And the non Recovery portion should have item lines account .

Cause

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