GL ACCOUNT ON TAX DISTRIBUTION LINE SHOULD COME FROM ACCOUNT SETUP ON TAX CODE

 Problem Description
-------------------

In Oracle Payables, you have created a new tax name and assigned it to your
invoice.  When your tax distribution line is created, you expect the GL
account to be the GL account assigned to that tax code.  However, it is the
same as the GL account on the distribution line to which the tax applies.

The Payables navigation path is  Setup -> Tax -> Codes

1.  One the Rates tab, enter a new tax code, a Tax Type:  Sales,
    Rate:  0%, GL Account:  01-000-1110.
2.  On the Recovery Rules tab, leave the Recovery Rate blank.
3.  Save.

Navigate:  Invoices -> Entry -> Invoices

1.  Enter a new invoice assigning the tax code created above.
2.  Choose the Distribution button.
3.  Enter one distribution line with the Account, 01-520-8993.
4.  Choose the Calculate Tax button.
5.  A new tax distribution line is created with the Account, 01-520-8993
6.  Save.

You expect the GL account that gets generated to be, 01-000-11110.  How do
you get the system to do this?


Solution Description
--------------------

Navigate:  Setup -> Options -> Financials (Tax tab)
Check if the option, Enable Recoverable Tax, is enabled.

Navigate:  Setup -> Tax -> Codes
The GL Account that you enter on this form is the account to which you will
charge this tax if the Enable Recoverable Tax Financials option is not enabled.
If this option is enabled, then only recoverable tax amounts will be charged to
this account.
 

Explanation
-----------

How GL Accounts are created on Tax Lines:

Type of Tax Line  Recoverable Flag GL Account Assigned
----------------- -------------------- -------------------------------------
Recoverable   Checked From tax code
Nonrecoverable   Not Checked From charge account (the GL account
on the distribution line to which
                                        the tax applies)


References
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Oracle Payables User Guide, Volume 1, Release 11i, page 2-148