Oracle R12 eTax: APP-SQLAP-97733 tax distribution error

If you get the following error when trying to look at distributions or validate your AP invoice, then this is caused by a currency issue.


invoice validation issue

If you enter the transaction in the same currency as the tax currency then there are no issues and the invoice can be validated.


The issue was caused when there is no exchange rate available. In our case it was because we did not have an ‘Exchange Rate Type’ set against the tax. After entering the exchange rate type of corporate, the invoice validated. If you have a default exchange rate already in place then it is likely that the exchange rates for the transaction date between your ledger and the tax currency are missing.

The issue however is that I do not want a exchange rate type as i want the same exchange rate to be used that was applied to the invoice which is the correct way of doing things.

Why do we not want the default exchange rate?

If a domestic supplier issues you an invoice in a non-domestic currency then you must use the same exchange rate that they have used. If we take an example of a Supplier issuing an invoice where the tax is $1000 but they used an exchange rate of 1.7 USD to the GBP then the GBP amount recorded in their ledger and subsequent GBP amount they put on their return as tax collected is £588. If we entered the invoice using our own corporate rate which was set to 1.5 USD to the GBP then the GBP amount and the amount we recover is £666. That means that total tax received and total tax paid out leaves the tax authorities short of £88! So that is why when the invoice is entered, the initial amount recorded in your GBP ledger has to be the exact same amount of that charged by your supplier. This will then be the GBP amount recorded against the transaction and the amount that is used in the tax return. You can always revalue your currency as soon as it has been posted to the GL to bring it back in line with your corporate rate.

So if we use the ‘Corporate Rte’ as the default exchange rate for a tax, the tax will use a different exchange rate than the supplier invoice and you will be non-compliant right? Wrong! From testing that we have conducted in a 12.2.4 environment, the tax posted to the GL was in fact linked to the USER rate and not the CORPORATE rate that it has been assigned to. So why do we need to put an exchange rate against the tax at all if it is going to take invoice entered exchange rate type?


We have logged an SR with Oracle and will update the blog post when we have a resolution