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Topic

    Kamal Ramchandani
    Supplier Invoices with Tax in Fusion Supplier Portal
    Topic posted October 15, 2018 by Kamal Ramchandani, last edited January 30, 2019, tagged Payables 
    111 Views, 2 Comments
    Title:
    Supplier Invoices with Tax in Fusion Supplier Portal
    Summary:
    Supplier Invoices with Tax in Fusion Supplier Portal
    Content:

    Our customer is not using tax on PO. They depend upon suppliers to provide this information. 

    Our customer is using EBS for Procure to pay cycle, they have purchased fusion supplier portal cloud service for create invoice functionality for supplier user. 

    Now in EBS, they do not have item based procurement, they only have category based procurement. For example, there is one category called Pantry items. This category covers groceries, kitchen items, tea, water, medicines, first aid kit etc. 

    So take example where they create a purchase order with two line, both have category as Pantry Items. for first line they put PO line description as Tea bags and for second item they put PO line description as X medicine. and they put the price (without tax) and submit PO to supplier after approval. This happens in EBS. 

    The PO will be interfaced to Fusion cloud and in Supplier Portal, supplier is able to see the PO (without Tax as there is no Tax on PO). After fulfilling PO, supplier is required to Create Invoice in Fusion cloud. 

    Now in cloud, supplier creates invoice, By law, the first line is taxable with VAT as 5% and second line is taxable as 0 % Tax exempt because as per UAE law, medicines are not taxable. This information is supposed to be provided by Supplier as our customer has no means to collect this information and configure their PO in EBS as per this information. 

    But we find that in Fusion, when supplier creates invoice, both lines are taxed as 5% because fusion is not calculating tax at Invoice line level. Fusion is calculating tax on sum of all the lines (at default 5% Tax rate as per setups)  which is wrong. 

    Hence our suppliers are not able to submit correct invoices. 

    Has anyone else faced a similar situation? What solution has been used to allow suppliers to create Invoices using Supplier portal where supplier is able to enter Tax amount per Invoice line manually

    Thanks

    Version:
    Release 13

    Comment

     

    • Alan Ng

      Moved from Supplier Management forum.

    • Sivaraj Shanmugham

      Kamal

      We had similar challenges (previous company) when we tried to implement Supplier portal for invoice submission. As a workaround, we enabled portal access only for Services based Vendors where no taxes are applicable. 

      In your case, you may want to consider building tax rules to selectively apply tax on certain Invoice lines. Since PO category is the same for both lines, there may be other transaction attributes that can be used to drive tax applicability. 

      Thanks, Siva