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SALES Taxes appear on Payables side of Intercompany trx

in Tax & Global 1 comment

Summary:

When Intercompany/Interproject Billing transactions are created and transferred to AR and then to AP, there is unexpected behavior arise - Taxes applied on AR side flow to AP Invoices without any option to delete them.

Content (please ensure you mask any confidential information):

We have 2 LEs under the same Ledger in the same country. Therefore the same Tax setup is applied to both LEs. Tax Regime based. We have separate Tax sets for SALES and PURCHASES, and corresponding Tax Rules dependent on Event Type, Accounting options, Location, Purch.Categories, etc.
Standard Invoicing flow works as expected, while ICO/IP flow has an issue - AP invoice consistently triggers Sales Tax (the one applied on AR side already), while we require Purchase Tax to be applied.

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