R12: AP: Incorrect Withholding Tax Calculation When Using a Withholding Tax Amount Ranges Rate Structure
(Doc ID 2858900.1)
Last updated on JULY 27, 2023
Applies to:
Oracle Payables - Version 12.1.3 and laterInformation 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:
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 |