Journal Entries for Recoverable Tax When Lease Accounting Is Not Integrated with AP

Summary:

Hi all,
I have a question about the accounting treatment for Recoverable Tax when Lease Accounting (LA) is not integrated with AP.

When I create a lease contract with Lump Sum Consumption Tax = Y and also configure the Transaction Tax settings, the lump-sum consumption tax journal entry is created at the time of lease accounting.

However, at the time of payment approval, the system does not create any journal entry for the Recoverable Tax portion.

Does this mean that the Recoverable Tax journal entry is not generated in LA, and is instead created in AP only when AP integration is enabled (i.e., when the lease is interfaced to AP)?