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

Last updated on MARCH 08, 2017

Applies to:

Oracle Payables - Version: 11.5.10 to 11.5.10.2
This problem can occur on any platform.

Symptoms

Problem Statement:
On 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 10000 with Withholding Tax
  6. Create a Standard Invoice for an amount of 53500 with 10% Withholding Tax
  7. Apply the prepayment to the standard invoice to the extent of 10000
  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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