Currently, the Oracle Payables Cloud module does not properly withhold taxes at source per invoice, considering their respective individual values, in cases where the tax calculation point occurs at the time of payment.
When there is an accumulation of the tax base for certain taxes, such as Brazilian Personal Income Tax (IRPF), the system fails to perform proportional withholding per invoice. Instead, in many situations, the total withholding amount ends up being applied in full to only one invoice at the time of payment.
Practical Example:
Considering two invoices:
Invoice 10250-56537021.1 – gross value of $9,329.28
Invoice 10250-67176291.1 – gross value of $354.72
The correct withholding should occur as follows:
Invoice 10250-56537021.1
Gross value: $9,329.28
Withheld tax: $1,656.83
Net amount payable: $7,672.45
Invoice 10250-67176291.1
Gross value: $354.72
Withheld tax: $97.55
Net amount payable: $257.17
However, when the payment request is created, the system ends up... concentrating tax withholding on just one invoice. As a consequence, when applying the new IRPF (Brazilian Income Tax) calculation factors in Brazil, Oracle Payables Cloud does not correctly manage the accumulation of invoices and their respective lines, resulting in an incorrect withholding calculation, as evidenced in the attached screenshot.
Given this scenario, it is understood to be essential that the Oracle development team implement an improved calculation logic, ensuring that the system performs withholding proportionally and correctly per invoice, even in situations of accumulated tax base. In the example presented, there is a difference of $966.54 between the amount that should have been withheld and the amount actually withheld by the system.
Sometimes, invoices with negative values are also generated, resulting from incorrect calculations in the accumulated total, making payment or bank and accounting reconciliation impossible.
Finally, the extraction from the bucket, containing all the calculation memory related to the aforementioned example, is attached for technical analysis and validation purposes.
