Question

Use tax with non-deductible tax does not work for supplier invoices in cloud 21R1

  • 9 August 2021
  • 3 replies
  • 227 views
T
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Can i please know whether anyone has created PO connected supplier invoices using a tax code which is tax type is “use tax” and the deductible percentage is 0% as shown below (tax codes window)

 

When a PO is create and an invoice is created and matched to the PO receipt. As shown below, the  invoice is not balanced properly because non-deductible tax amount is not added to posting lines. the expectation here is that it will be balanced and IP11 posting will be created for use tax

 

 

This issue is there in 21R1 Regional test CMB and I have already logged a support case, but since the customer who face this issue has not decided to move to cloud yet, there are complications in sending this to R&D

 

Appreciate an answer from someone who is aware on this  

 

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3 replies

S
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Hi @thkolk ,

What about adding a separate posting line (without a ‘tax code’) to record the value of ‘Non-Deductible Tax Amount’? 

I have checked this in 21R1 Core Environment and at this point the postings got balanced as shown below,


 

However, the concern here is ‘Transaction Code’ would appear as ‘Manual’ and the value wouldn’t appear under ‘Non Deductible tax amount’ column. But you may check whether this can be used as a workaround. 

I have previously faced a similar issue when using ‘Calculated Tax’ and this is what I did to overcome that issue. 

Hope this would be helpful.

Best Regards

Sugandi

S
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Userlevel 6
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Hi @thkolk ,

You may refer this post, which is about the issue I faced using ‘Calculated Tax’.

Unable to create an invoice which includes tax code with tax type set as ‘calculated tax’ and deductible % is different from 100%

 

Best Regards

Sugandi

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Charges on a purchase order are copied to the invoice and suppliers can edit these charges if the required business rules are enabled in Ariba Network. Charges from ERP copy orders aren't carried over to invoices or service sheets.

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