How to have "Interim Tax Account" from the Tax Rates Applied at the Invoice Approval/Accounting?

(Doc ID 567377.1)

Last updated on AUGUST 24, 2016

Applies to:

Oracle E-Business Tax - Version: 12.0.4
Information in this document applies to any platform.

Goal

R12: Recoverable Tax Shows Credits and Charges to the Same Account After Payment
How to have "Interim Tax Account" from the Tax Rates applied at the invoice approval/accounting?

1. Responsibility: Oracle Payables

Tax Rate

Tax Rate Code: IVA 15% AP
Default Recovery Rate Code: IVA MEXICO RECOVERY 10
Recovery Type: Standard
Default Recovery Settlement: Deferred
Set as default rate: Not Selected
Tax Expense:
Tax Recovderable/Liability: 01-01-002-006-0000-0000-115301-1731-000-000-000-000
Interim Tax: 01-01-002-006-0000-0000-115101-1711-000-000-000-000

Tax Recovery

Tax Recovery Rate Code: IVA MEXICO RECOVERY 10
Recovery type: Standard
Tax Recovery/Liability: 01-01-002-006-0000-0000-115101-1731-000-000-000-000

Invoices Tax Accounting take the account 01-01-002-006-0000-0000-115301-1731-000-000-000-000 for Recoverable Tax. This is wrong, it has to be 01-01-002-006-0000-0000-115101-1711-000-000-000 from the interim tax account at tax rate level.

2. Path: Invoices -> Entry -> Invoices
3. Create an invoice and save.
4. Validate the invoice.
5. Pay the invoice.

How to have "Interim Tax Account" from the Tax Rates applied at the invoice approval/accounting?
And then have the "Tax Recoverable/liability Account" from the Tax Recovery Rates or Tax Rates applied at the accounting of the payment?
Is it possible using a Recovery of 100%?

The application is not working properly: credits and charges are done to the same account in the Recoverable Tax after paying an Invoice.

Expected behavior:

1) At the invoices validation moment: Charge for the Interim Tax account in Tax Rates.
2) At the payment moment: Credit for for the Interim Tax account and charge to the Recoverable Liability Account (from the Tax Rates or Recoverable Tax Rates).

A Tax recovery account is defined at Recovery rate level.
On tax calculation, the accounting isn't first done in the interim tax account.
It is taking the recoverable account defined at the tax rate level.
Once payment is made, the tax amount isn't transferred from Interim tax to main tax recoverability account defined at the tax rate level.

Solution

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