Incorrect Withholding Tax Calculation on Invoice after Prepayment Application
(Doc ID 760486.1)
Last updated on AUGUST 18, 2023
Applies to:Oracle Payables - Version 220.127.116.11 to 18.104.22.168 [Release 11.5]
Information in this document applies to any platform.
This problem can occur on any platform.
On Release 22.214.171.124 in Production:
Withholding Tax amount is incorrectly calculated on invoice when prepayment is applied.
Expect Withholding Tax amount to be calculated correctly on the invoice.
Steps To Reproduce:
- Payables Responsibility
- Payables options
- Ensure that "Apply Withholding Tax" is set to "At Payment time" under the "Withholding Tax" tab
- Invoice Entry
- Create a Prepayment Invoice for an amount of <AMOUNT1> with Withholding Tax
- Create a Standard Invoice for an amount of <AMOUNT2> with <PERCENT>% Withholding Tax
- Apply the prepayment to the standard invoice to the extent of <AMOUNT1>
- Pay the remaining amount on the invoice
- Upon payment you find that calculation of withholding tax is on net of prepayment amount and not on invoice amount
Incorrect Withhold Tax Calculation which results in wrong payment to Supplier Invoices.
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