Vertex - PO Matched Invoice Created Tax Variance Lines

Hi

We found out that PO matched invoice where tax is calculated using vertex 3rd party application created a lot of additional lines i.e. tax variance lines at invoice distribution level. This cause additional entries as well in invoice accounting entries and make the invoice accounting entries complicated.

We found out that this additional entries happen for scenario where partial amount of vendor charge tax apply in invoice.

For example, vertex calculates tax on the PO for $25.13, and when invoice is created, we apply vendor charge tax for $12.

And this is how oracle cloud creates the invoice distributions for this scenario: