Header level control tax amount is not equal to 0
Oracle Version: Oracle R12
Payables could not calculate tax due to: The system cannot prorate this tax amount because the header level control tax amount is not equal to 0, but the total calculated tax amount for this transaction is 0. Please contact your tax manager.
Cause of Issue:
The error message “Payables could not calculate tax due to: The system cannot prorate this tax amount because the header level control tax amount is not equal to 0, but the total calculated tax amount for this transaction is 0. Please contact your tax manager.” Will happen when the tax rate that the system is trying to calculate is a zero rated tax rate and as such cannot be changed to any other value. Using a tax control amount means that any tax amount differences are prorated across the lines so if the line has a 0% tax rate then the system is physically stopped from being able to make any adjustments and this is why you get this error message.
The following data flow should be followed to identify where the system is trying to drive a 0% tax rate.
Error Checking Flow
If you have not manually used the tax override field to choose ‘Zero Rated ‘or ‘Exempt from VAT’ then check the supplier to see if an ‘Associated Fiscal Classification Code’ has been added that is driving an exempt tax rate. If there is one but it has been end dated, check the end date to see if the invoice you are entering falls before this end date and so is still being affected by the tax rule. IF it is, change the effective to’ date to one that is before the invoice you are trying to enter.
If no associated fiscal classifications exist, check to see if the supplier has a registration status of ‘NOT REGISTERED’ as this could also be driving a 0% tax rate.
If the supplier has no indication of tax overrides then check other factors such as the GL codes being used, maybe the Purchase Order was incorrectly coded and is using a GL code that is linked to an exempt tax rate.
Finally, remove the tax control amount and recalculate the tax. The invoice should now validate without the error but if a 0% tax have been determined but the invoice has tax on it then there is likely to be a mistake which will need further investigation.
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