EAP: Incorrect Withholding Calculation After Prepayment is Applied to Regular Voucher

(Doc ID 2030371.1)

Last updated on MARCH 18, 2016

Applies to:

PeopleSoft Enterprise FIN Payables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms


Incorrect Withholding Calculation after Prepayment is applied to Regular Voucher.

Setup
-----
Withholding Basis Amount Option on Withholding Entity should be set to 'Net'.

Steps
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1) Create a Prepayment Voucher for INR 427,427.
2) Override Withholding Basis Amount to INR 380,409 on Voucher Withholding Information page.
3) Approve, Post and Pay the Prepayment Voucher.
4) Withholding Schedule is created for INR 38,041.00 (10% of INR 380,409).
5) Create Regular Voucher with Net amount = INR 38,0409.00, Excise Tax = INR 47,018.55 and Voucher Gross Amount = INR 427,427.55.Withholding Basis Amount is not overridden.
6) Apply the Regular Voucher to Prepayment.
7) Post the Regular Voucher.

Expected Behavior
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Withholding Amount should be calculated as INR 38,041.00 (10% of NET 38,0409.00)

Actual Behavior
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1. Withholding Amount is 33856.35 INR (8.90% of NET 38,0409.00) and the same is applied with regular voucher
2. Payment schedules are incorrectly generated.
3. Prepaid Reversal and AP Accrual Accounting entries are incorrect.



Cause

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