R12: AP: The Withholding Amount Is Not Getting Prorated Correctly on the Standard Invoice Which Has Multiple AWT Codes and When Prepayment Is Applied (Doc ID 3008827.1)

Last updated on MARCH 06, 2024

Applies to:

Symptoms

The Withholding amount is not getting prorated correctly on Standard Invoice which has multiple AWT codes and when Prepayment is applied on it.

Steps to reproduce the issue:

This is just sample case:

1. Create a Withholding Tax Code 'AWT_A' with 3 different tax rates:
   >Tax X with 1%
   >Tax Y with 1%
   >Tax Z with 1%
   
   
2. Create a Prepayment Invoice with Amount of 100000 and the Withholding Tax Code 'AWT_A'
   >Validate, Account and Pay the Prepayment Invoice
   
   
3. The lines for Prepayment Invoice were generated like this:
   
   Item                    100,000
   Withholding Tax     -1,000
   Withholding Tax     -1,000
   Withholding Tax     -1,000
   
   
4. Create a Withholding Tax Code 'AWT_B' with 3 differrent tax rates:
   >Tax X with 1%
   >Tax W with 2%
   >Tax Z with 1%
   
   
5. Create a Standard Invoice with Amount of 200,000 and the Withholding Tax Code 'AWT_B'
   >Apply the Prepayment Invoice on the Standard Invoice, Validate and Account the Standard Invoice
   
   
6. The lines for Standard Invoice were generated like this:
   
   Item                  200,000
   Prepayment     -100,000
   Withholding Tax   -2,500
   Withholding Tax   -1,250
   Withholding Tax   -1,250
   
   
7. The user's expectation is to have these amounts generated on Standard Invoice after prepayment application:
   
   Item                 200,000
   Prepayment    -100,000
   Withholding Tax  -3,000
   Withholding Tax  -1,000
   Withholding Tax  -1,000
   
   *Overall the amount for Withholding Tax is fine but not per each Withholding Tax line.

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.