Home / Oracle Modules / Archive by category "Receivables"
This article explains how in Oracle R12, you can create an invoice that has the correct total amount but with the lines adjusted down in accordance with the potential to automatically adjust the AR transaction to record the withholding tax.
To do this you will need to create a separate tax regime which takes a % based on the compounded GB VAT tax rate, as shown below.
In the example above you will see the original line amount was for 1000 but had 20% tax applied to it. By withholding 20% of the total invoice you would get 240, meaning that the original line amount of 1000 is now actually only 760.
By modifying the auto-accounting rules you can set the withholding tax line to be the same as the revenue account. In the example below you can see that 1. Is the original tax line and 2. Is the withholding tax line.
Whilst withholding tax is only applied to the AP transaction, it is often required to show what amount of withholding tax is required on the AR invoice that is sent to the customer. With a modification to the way the invoice is formatted, it is possible to automate the creation of the withholding tax line on the AR transaction without actually effecting any of the normal tax calculation.
For some reports for European VAT, the Tax Date of a transaction needs to be populated. This is an unreasonable task to expect users to do as it can only be done manually meaning that for every order that is imported, the transaction would need to be uncompleted and the tax date would have to be manually updated!
Oracle offer a patch for the supported countries to populate the tax date from Orders but this does not work if you do not have the localisations turned on which could be the case if you are a German entity who has a site in Hungary and charges Hungarian VAT when they ship from there. The Operating unit is German and the localisation country would be Germany but the tax in this instance is Hungarian! Another reason why this does not always work is that for any manual transactions, these would also need to be manually updated.
Create a request that does the following “update jg_zz_vat_trx_details set tax_invoice_date = trx_date where tax_invoice_date is null“. Then create a request set which first has the EMEA VAT SELECTION PROCESS and then your request to update the tax date.
Now there is no need to populate any of the tax dates as these will automatically take the transaction date if the tax date is NULL but is the user does put in a tax date manually, then this will be chosen instead.