Tax only invoice for Non Recoverable Account

Module: Payables

Oracle Version: Oracle R12

Error Message:

“Please define a Non Recoverable Account in the tax Setup, or enter an Account at Invoice lines Level (ERROR=Default Account for tax only line not provided or expense account not defined).”

Cause of Issue:

Non recoverable tax takes the GL account code string from the expense line entered. A tax only line is still recoverable yet there is no expense line! So Oracle errors as it is trying to create a non-recoverable tax line even though the amount is zero!

Solution:

There are two ways. The first is to enter a tax expense account against the tax rate itself. This can be problematic as some companies don’t have a tax expense account (has to be expense not liability) set up available.

The alternative is simply to put any default distribution account on the tax only line and this will work in the same way. It can be any value because unless you 0% recover the tax, the non recoverable amount is going to be zero. If you only partially recover the tax then put an appropriate expense account in.

Save

Submit a Comment

Your email address will not be published. Required fields are marked *

Additional Support

When available, we provide additional resources to a particular support item, such as User Guides, blog posts, support videos and links to recommended Oracle solutions.

i

User Guide

w

News Article/Post

Video Support

R

Oracle Recommendations

GCC VAT Oracle Learning Series

Want to know how to set tax up for Oman, Kuwait, Bahrain, Qatar, United Arab Emirates and Saudi Arabia then sign up to our free webinar series.

Share This