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GST : Reverse charge taxes applied on credit memo in payables causing imbalances in GL (Doc ID 2776310.1)

Last updated on JUNE 12, 2023

Applies to:

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


Problem Description
Payables invoice Credit Memo (CM) with reverse charge mechanism (RCM) taxes when applied observed that there exists imbalance of entries
across entered cr and entered dr in jai_tax_journal_entries and in gl_interface tables.
Because of this it would result in EU02 error.

This is observed in case of RCM with 50% recoverable.
Adhering to their business requirement the rounding setup is such that
Rounding at regime is set as Nearest Decimal with precision rounding factor as 2.
Issue is observed only in this case.

Steps for replication
1. Raise a AP CM with amount for ex:-136,169.00
2. Apply 50 % RCM taxes ( recoverable )
3. Validate.
4. Run India - Period End processing concurrent
5. Observed below entries in jai_tax_journal_entries
    Entered CR        EnterDR     Accounted CR   Acct DR
             -6127.61                        -6127.61
             -6127.61                        -6127.61
                            -12255.21                         -12255.21
             -6127.61                         -6127.61
             -6127.61                         -6127.61
                            -12255.21                         -12255.21

As observed there is imbalance across entered cr and dr as -12255.21 will not match will 6127.61 *2

Expected behavior
Adhering to their rounding setup defined either at regime with values as
rounding to Nearest Decimal and rounding factor as 2 , wants this rounding issue to be addressed.




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