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

Last updated on AUGUST 18, 2023

Applies to:

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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