Why is VAT not calculated at receipt for a Service Purchase Order?

Summary:

We would like to confirm the standard Oracle Fusion behavior regarding VAT calculation at the receipt stage for a Service Purchase Order.

In our case, we tested the setup after applying the following configurations:

• Enabled Tax Calculation on Receipt Accounting Distributions
• Enabled Allow delivery-based tax calculation
• Set Report Delivery-Based Taxes on = Receipt
• Verified that Invoice Match Option is not set to Order
• Verified that Accrue at Receipt = Yes

However, VAT is still not being calculated at the receipt stage.

Please note that the PO line type is Service, not Goods.

Based on Oracle documentation, we found that:

• service lines may not follow the same receiving behavior as goods