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R12: AP: Incorrect Withholding Tax Calculation When Using a Withholding Tax Amount Ranges Rate Structure (Doc ID 2858900.1)

Last updated on MARCH 28, 2022

Applies to:

Oracle Payables - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

Withholding tax calculation is only using the first amount range in an Amount Ranges rate structure.

Steps to reproduce
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1. In the the Withholding Tax Details form (Set Up > Tax > Withholding > Codes ) create a tax code with these specifics:

Rate Structure: Amount Ranges
Period Basis: Invoice
Amount Basis: Withheld Amount

Rates
                   Effective Dates   Amount Range
Type           From       To        From        To               Rate
Standard                                       0.00   20,000.00     1.0
Standard                                20,000.00  50,000.00      1.5
Standard                                50,000.00                     2.0

2. In the Invoices form (Invoices > Entry > Invoices) create an invoice with an item amount of 200,000.00 using the above withholding tax code.

After validating the invoice here is only one Withholding distribution created for -2,000 which is just using the rate for the first set of amount ranges.

It is expected that three Withholding distributions are created.  The first 20,000 is calculated at 1%, the next 30,000 (the range between 20,000 and 50,000) is calculated at 1.5% and everything after 50,000 is calculated at 2%.  For a 200,000.00 invoice this is ...

1    -200.00
2    -350.00
3  -3000.00

(All withholding is stored as negative amounts)

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution


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