The client has raised a concern that for Purchase Orders coded to Inventory (Goods destination),
in Tax & Global
Hi,
I need your help understanding an Oracle Fusion tax accounting issue.
The client has raised a concern that for Purchase Orders coded to Inventory (Goods destination), the non-recoverable PST is not being posted to the inventory account.
Example:
PO Charge Account (Inventory):
100.0000.00000.140500.000.00000.00000
However, when the invoice is validated, Oracle posts:
- Item Cost → Accrual Account (200600)
- PST Amount → Tax Rate Variance Account (563450)
- GST Recoverable → Tax Recoverable Account (202450)
The client's expectation is that since PST is non-recoverable and the PO is for inventory, the PST should be capitalized into the inventory account (140500) rather than being posted to 563450.
Could you please advise:
- Is Oracle's current accounting behavior standard?
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