GST :EU02 error during journal import for RCM with 50% recoverable (Doc ID 2757699.1)

Last updated on APRIL 04, 2025

Applies to:

Symptoms

Problem Statement
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Observed that for an invoice with reverse charge taxes (RCM) observed that the generated accounting entries in jai_tax_journal_entries table are imbalanced. 
Hence when trying to import those records into GL , it is failing with an error. 

Error ( during journal import)
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EU02 : This journal entry is unbalanced and suspense posting is not allowed in this ledger

Steps for replication
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1. Raise a prepayment with GST Reverse charge (RCM) taxes which are defined as Recoverable with 50% recovery.
2. Validate. Account . Pay the prepayment.
3. Raise standard invoice with GST RCM , (recoverable and 50 % recovery).
4. Validate.
5. Apply prepayment on the standard invoice.
6. Observed that jai_tax_journal_entries is populated with imbalanced values i.e. Entered_CR and Entered_DR are not matching.
    As a result Journal Import has failed with EU02 error.

Expected Behavior
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On applying RCM taxes with 50% recoverable there shouldn't be any imbalances of entries. 

Changes

Cause

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