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Credit memo not picking service tax
Posted: Mon Aug 31, 2009 7:02 am
by fun2chat
We are using India localization. Now we have a AR Transaction with service tax. When i doing credit memo for this transaction. The credit memo only pics the base amout but the service tax amounts remains.
Is it because i am using india localisation?? Can you please guide me how i can do credit memo transaction for such transactions.??
Regards
Posted: Tue Sep 01, 2009 12:33 am
by tgs100
You should have posted this question in finance rather than HRMS.
The issue is not related to India Localization.
<b>The credit memo only pics the base amout but the service tax amounts remains.
</b>
The above line is not clear. When the credit memo is applied against the invoice, the invoice number is chosen in the 'Apply To' field and then amount in the 'Amount Applied' field. I fail to understand where does the system automaticall pick only the line amount.
May be my understanding is wrong. Can you post more details on the steps followed and amount details.
Cheers,
Saravanan TG
Posted: Tue Sep 01, 2009 1:01 am
by admin
Moved from HRMS to Finance. tks
Posted: Wed Sep 02, 2009 7:52 am
by fun2chat
I will give a clear picture.
Say i have a AR Transaction
Base Amount 2000.00
Service Tax 200.00
Total 2200.00
The service code is defined in india local tax code and the service tax is flowing through regime. The transaction is saved and completed.
Now i want to raise a credit memo for this transaction. so i re-open the above transaction and from Action>Credit i try to raise a credit memo.
I want to raise 100% credit memo so i simply click credit balance. but when i save this, the base amount is credited but the service tax amount comes back to the balance due. so my issue is that this service tax amount is not getting credit in credit memo.
Please advice
Posted: Wed Sep 02, 2009 9:09 am
by tgs100
Yes. You are right.
Line amount and freight amount balance becomes zero where as tax amount balance remains the original amount after saving the credit transactions.
I am not sure whether the issue is related to india Localization or in standard form. It is better to log a service request with oracle to get a solution.
I found some metalink notes with similar issues.
Cheers,
Saravanan TG