GL account on TAX distribution line SHOULD COME from account SETUP on TAX CODE

Source: Internet
Author: User

Problem Description
-------------------

In Oracle payables, your have created a new tax name and assigned it to your
Invoice. When your tax distribution line are created, you expect the GL
Account to is the GL account assigned to that tax code. However, it is the
Same as the GL account on the distribution line to which the tax applies.

The Payables navigation path is Setup-> Tax-> Codes

1. One the Rates tab, enter a new tax code, a tax type:sales,
rate:0%, GL account:01-000-1110.
2. On the Recovery Rules tab, leave the Recovery Rate blank.
3. Save.

Navigate:invoices-> Entry-> Invoices

1. Enter A new invoice assigning the tax code created above.
2. Choose the distribution button.
3. Enter one distribution line with the account, 01-520-8993.
4. Choose the Calculate Tax button.
5. A new tax distribution line are created with the account, 01-520-8993
6. Save.

You are expect the GL account this gets generated to be, 01-000-11110. How do
You have the system to doing this?


Solution Description
--------------------

Navigate:setup-> Options-> Financials (Tax tab)
Check if the option, Enable recoverable Tax, is enabled.

Navigate:setup-> Tax-> Codes
The GL account so you enter on this form is the account to which you
Charge this tax if the Enable recoverable tax Financials option are not enabled.
If This option is enabled, then only recoverable tax amounts'll be charged to
This account.


Explanation
-----------

How GL Accounts are created on Tax Lines:

Type of Tax Line recoverable Flag GL account assigned
----------------- -------------------- -------------------------------------
Recoverable Checked from tax code
Nonrecoverable not Checked from Charge account (the GL
On the distribution line to which
The tax applies)


References
----------
Oracle Payables User Guide, Volume 1, Release 11i, page 2-148

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