Recoverable Tax in R12
I am new to e - TAX and trying to understand how it works
I did the below tax setups
1. One Tax Regime - TRG01
2. One Tax - TRG01.TAX01
3. There is one recoverable TAX say TRG01.TAX01.TR01 attached with above two - 50%
4. One Tax Status - TRG01.TAX01.TS01
5. One Rate - TRG01.TAX01.TS01.TR01 - 30%
When I create an invoice of amount 100
My expectatiosn are
Line : 100
Tax: 30
Reco Tax: 15
Total Tax amount = 100 + 30 - 15 = 115
But I am getting the amount as 130
and only one tax line is shown in TAX details...there is no entry for tax recovery..
Can any one tell me what I have missed
Thats correct!!!
What you see is correct as per stnd apps...
but to know if your recoverable tax setup is working or not, you need to validate and account the transaction.
Next chk the accounting entries, the entries for your example shd be like
Item Expense 100
Non-Recoverable Tax 15
Recoverable Tax 15
Liability1 100
Liability2 30