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Incorrect Withholding Tax Calculation on Invoice after Prepayment Application (Doc ID 760486.1)

Last updated on FEBRUARY 14, 2019

Applies to:

Oracle Payables - Version 11.5.10.0 to 11.5.10.2 [Release 11.5]
Information in this document applies to any platform.
This problem can occur on any platform.

Symptoms

Problem Statement:
On Release 11.5.10.2 in Production:
Withholding Tax amount is incorrectly calculated on invoice when prepayment is applied.

EXPECTED BEHAVIOR
Expect Withholding Tax amount to be calculated correctly on the invoice.

Steps To Reproduce:

  1. Payables Responsibility
  2. Payables options
  3. Ensure that "Apply Withholding Tax" is set to "At Payment time" under the "Withholding Tax" tab
  4. Invoice Entry
  5. Create a Prepayment Invoice for an amount of <AMOUNT1> with Withholding Tax
  6. Create a Standard Invoice for an amount of <AMOUNT2> with <PERCENT>% Withholding Tax
  7. Apply the prepayment to the standard invoice to the extent of <AMOUNT1>
  8. Pay the remaining amount on the invoice
  9. Upon payment you find that calculation of withholding tax is on net of prepayment amount and not on invoice amount

Business Impact:
Incorrect Withhold Tax Calculation which results in wrong payment to Supplier Invoices.

Cause

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In this Document
Symptoms
Cause
Solution
References


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