Last updated on MARCH 09, 2017
Applies to:PeopleSoft Enterprise FIN Payables - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.
The following bugs incorrectly modified the Service Tax calculation part in the Voucher Posting and Payment Posting to include Non Recoverable amount for calculating Service Tax:
<Bug 17902426> (delivered within FSCM 9.2 Image 6)
<Bug 17902425> (delivered within FMS FINANCIALS 9.1 BUNDLE #30)
Accordingly, now there is no difference in accounting for service tax recovery and non-recovery amount.
However, for non-recoverable taxes, tax amount should be booked under expenses.
The non-recoverable taxes should be applied to expense account.
1. On Set Up Financials/Supply Chain > Common Definitions > Excise and Sales Tax/VAT IND > Tax Calculation Code, set up the non-recoverable tax with 14.5% rate.
2. On Set Up Financials/Supply Chain > Common Definitions > Excise and Sales Tax/VAT IND > Tax Location, define SST account.
3. Navigate to Accounts Payable > Vouchers > Add/Update > Regular Entry, and create voucher (non-recovery amount calculated).
4. Post the voucher.
5. Create payment and post it.
6. Go to Accounts Payable > Review Accounts Payable Info > Vouchers > Accounting Entries, and review the accounting entries generated.
AP Accrual debited SST line for the non-recoverable tax amount, then Payments credited SST and debited SERV for the tax amount.
Expect the tax amount to be included in expenses, and no SST or SERV lines created.
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