In the F1 helptext for Prepayment Based Invoice, we find below, But still, we can create a Prepayment Invoice for the CO. Yet when we print the invoice report, we notice some incorrect tax calculations. Invoice lines look like below,So maybe we are facing this tax calculation issue due to above mentioned prerequisite, but why?What is the idea behind above highlighted prerequisite on a functional stand point?
Apps 7.5.New construction sub contractors VAT handling rules are coming in soon and we have to handle the transactions and HMRC reporting.The new rules mean the sub contractor invoices without any VAT and we have to add on the VAT to the invoice and report it to HMRC. We don’t want to pay the sub contractor the cash amount of VAT.We can setup new VAT codes etc but this would pay the VAT amount to the sub contractor. I am thinking of setting up a new Tax code with type Tax Withholding with tax received and tax withholding as Payment, will this work? Which Posting controls will need to be changed? Any advice would be much appreciated.
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