EAP: Wrong Accounting Entries When Prepayment Applied to Regular Voucher With Service Tax and Withholding
(Doc ID 2040620.1)
Last updated on OCTOBER 01, 2018
Applies to:PeopleSoft Enterprise FIN Payables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
Wrong accounting entries for Withholding are generated when a Prepaid Voucher is applied to a Regular Voucher that was posted, paid, payment cancelled and unposted.
Enable a India Vendor for both Withholding and Service Tax.
The issue can be reproduced at will with the following steps:
1. Create a Prepaid Voucher.
2. Override the Withholding Basis Amount.
2. Run Voucher Posting.
3. Pay the Prepaid Voucher.
4. Create a Regular Voucher and make sure Service Tax is calculated.
5. Uncheck 'Automatically Apply Prepayment' option on the Voucher and post the Voucher.
6. Make the Regular Vendor Payment.
7. Post the Payment.
8. Cancel/Void the Payment with Cancel Action 'Re-Open Voucher(s)/Re-Issue.
9. Run Payment Posting.
10. Unpost the Regular Voucher.
11. Delete the withholding schedule created on the voucher and adjust the amount to the regular vendor payment schedule.
12. Apply Regular Voucher to Prepayment manually.
13. Post the Regular Voucher which generates wrong accounting entries for accruals and prepaid reversals.
Accounting entries should be created with the correct withholding amount that is applied to the prepaid voucher.
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