Oracle R12 How to change a paid invoice when you need to make a tax corrections

Changing the tax rate or recovery rate on a paid invoice

First you need to make sure you know the policy of adjusting a paid invoice as many companies do not want to allow this option and by default it should certainly be set to NO. However, we have found that when a user applied the wrong tax code to a transaction and a correction is needed, it is far easier, cleaner and more accurate to change that invoice even if it has been paid.

Changing the original transaction instead of applying a credit note and reentering the invoice has many more benefits. Firstly, the time taken is much less than having to create a credit memo and a new invoice, both of which then have to be paid. Continue Reading

Triangulation tax in Oracle R12 eBTax and Oracle Fusion Tax

There is often a look of distress on someone’s face when you want to discuss triangulation tax for indirect taxation but it’s not difficult to grasp the basic concepts. There is a slight difference between triangulation in its ‘legal’ terms compared to setting up a triangulation tax rate in an Oracle ERP system with the rules to go with it. Technically, triangulation is considered as a zero rate tax but in Oracle we want to give it a unique name, something like EU sales triangulation in order for us to clearly see the tax on the invoice and easily identify it on the reports.

Triangulation is used to describe the process when more than two entities are involved in the supply of goods that cross international borders. The ‘ABC’ flow of transactions will involve three different parties where goods are shipped directly from party A to party C but party B is the selling organisation and never physically receives the goods or handles them during the shipping process.

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