VAT Tax leaves a balance on AP Accrual A/c When Invoice Matched (Doc ID 461099.1)

Last updated on NOVEMBER 14, 2008

Applies to:

Oracle Purchasing - Version: 11.5.10.2
Information in this document applies to any platform.

Goal

A purchase order is created for $1000 with a VAT Tax of 5%. The receipt is done for this PO and
the Inventory AP Accrual shows a credit  of $1050  including the tax amount. AP Invoice is
created and matched to the receipt. The total invoice amount is $1050 . The Inventory AP accrual
shows a debit of $1000  and $50  is debited to the VAT Tax input account mapped to the tax
code. Hence there is an imbalance of  $50  in the Inventory AP accrual account.

Solution

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms