EBI9.2: VAT Calculation is Done on Net Amount while Setup is Done at Gross Amount
(Doc ID 2666341.1)
Last updated on JUNE 01, 2020
Applies to:PeopleSoft Enterprise SCM Billing - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
VAT is calculated at “Gross” and not getting calculated at “Net” amount while entering an invoice in Billing module.
While entering the billing invoice using Standard Billing page, a bill line was created with VAT and discount.
The VAT setup at the Entity level and the transaction level is set to calculate on "Gross". In spite of that, VAT is getting calculated on the "Net" Amount.
The issue can be reproduced at will with the following steps:
1. VAT Entity – Setup VAT to be calculated at “Gross” - Navigation: Setup Financials / Supply Chain > Common Definitions > VAT and Intrastat > Value Added Tax > VAT EntityClick on “VAT Default” link.
2. VAT Default
3. Setup a discount code to be assigned on an invoice - Navigation: Setup Financials / Supply Chain> Product Related > Billing > Setup > Discount & Surcharge Enter Standard Invoice
4. Navigation: Billing > Maintain Bills > Standard Billing. Entered the parameters and clicked on “Add”.
5. Select “Header – Info 2” under Navigation and check whether the VAT is set to calculate at “Gross”.
6. Enter Line – Info 1.
7. Enter a line and assign amount. Later click on VAT Info and ensure that the VAT rates appear.
8. Click on Save.
9. Return to Line Info – 1 page and assign a discount code to the line.
10. Assign Discount to the line.
11. Click on Save and return of Line – Info 1. The discount amount should be visible on Line – Info 1.
12. Issue: Now that we have setup VAT to be calculate at “Gross Amount” the VAT Basis Amount should be 1,000,000 instead of 940,000 (Net Extended Amount).
However after going to the “Summary” page and clicking on “Calculate Taxes” button the VAT Basis Amount is still considered as 940,000. This results in miscalculation of VAT Amount.
Click on VAT Amount 150,400.00 It shows the VAT Basis Amount as 940,000 instead of Gross Amount 1000,000.00
13.The Print Pro-forma also shows the same.
14. Requirement is have VAT calculated on Gross amount i.e. 1,000,000 (without considering the discount amount).
15. Change the status of the invoice from “NEW” to “RDY”
16. Run Single Action Invoice job. - Process goes to success, however VAT Calculation happens on Net Amount and not the Gross Amount.
Navigation: Billing > Generate Invoices > Non-Consolidated > Single Action Invoice.
For the replication steps, please review GI-OSS- Replication_document.pdf.
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