0 Replies Latest reply on Oct 4, 2018 3:58 PM by 2973973

    Tax Payable on Receipt Basis in AR. How to handle Tax Payable on Advance Receipts?

    2973973

      Part of South America operations Tax (VAT) will be paid based on receipt on receivable transactions.

      Business Scenario:

      All our Receivable Transactions are imported from OLFM.

      Tax amount on transactions payable on Receipt Basis.

      System supports to pay Tax based on receipt application if transactions are created for installment amounts.

      But we have an exceptional scenario where Customer paying more than installment amounts. Unapplied amount we move to on-account and will apply to future installments whenever transactions created.

      Legal Requirement:

      Tax portion on unapplied/on-account receipt amount should be paid immediately as per legal requirement.

      Whenever unapplied/on-account amount applied to future installment invoices, tax paid on unapplied/on-account amount should offset and if there is any balance remaining on transaction tax should be paid on receipt.