Payables & Cash Management

Get Involved. Join the Conversation.

Topic

    Judy Hamner
    Need to modify Income Tax Type on Payables Invoice Line...
    Topic posted January 10, 2019 by Judy HamnerSilver Trophy: 7,500+ Points, last edited February 6, 2019, tagged Compliance, Payables, Reports 
    158 Views, 16 Comments
    Title:
    Need to modify Income Tax Type on Payables Invoice Line without re-approval
    Summary:
    Our Tax manager is reviewing 1099 for exceptions and needs to change specific lines after invoices have been paid. This action should not require the invoice to be resubmitted for approval.
    Content:

    Our organization reviews 1099 data prior to running reports.  We often find hundreds of lines on paid invoices where, though the Supplier is 1099 reportable, there are specific expenses that are exempt.  The 1099 expert should be able to change the Income Tax Type on the line without having to re-submit the invoice for approval.  We are finding that when this field on the invoice distribution is edited, the invoice goes to a re-submit for approval status.  How do we bypass this resubmission since this change has no impact on the accuracy of the invoice or the payment, only the subsequent 1099 reporting?

    This is our first 1099 reporting cycle on Oracle Cloud.

    Thanks.

    Version:
    R13 18C

    Comment

     

    • Jason Christiansen

      Have you tried one in a test environment to see if it triggers the reapproval? I thought in our testing (this would have been on R12 though) we discovered that did not trigger the need for reapproval. I know some fields do and some don't.

    • Judy Hamner

      Yes, we did try in our test environment.  I thought when we originally tested in R12, it didn't trigger re-approval.  But now in R13 that isn't the case.  We really don't want to have to push these through approval again - it would be very confusing and time consuming for our approval chain.

    • Becky Alvarez
      The Invoice would require reapproval if the any of the following are changed
      ·         Invoice amount
      ·         Line amount
      ·         Distribution Combination
      ·         Distribution Set
      ·         Tax amount
      ·         Line is added
      ·         Line is canceled

      Updating the tax type or code is like changing the tax amount and would trigger a reapproval.  To get around that you could Force Approve.  I have pasted the details about the Force approve from the AP User Guide below and hope this helps.

      Force Approve

      You may have to force approve an invoice, for example, if an invoice must be paid immediately. Before you can select this action, you must have the appropriate privileges and enable the Allow force approval option on the Manage Invoice Options page. The approval status on the invoice changes to Manually approved.

      Note: The Accounts Payable Manager job role can force approve invoice

      • Jason Christiansen

        Hi Becky. I don't think I agree that changing the tax type or tax code is like changing the tax amount. The tax amount would be a financial impact, where as the tax type is not. In fact, in this instance, changing the tax type is a very common situation that forcing the invoice to go through workflow approval again is unnecessary since the approvers probably have no knowledge of the correct tax type. I think this should be classified as a bug in the system, especially if it did change from R12 to R13.

        • Becky Alvarez

          I understand what you are saying but the system sees a change in the tax and and wants to be sure that it is OK so it triggers a reapproval.  One of the things we have to do to remain compliant to the many different reporting authorities we have to satisfy to ensure all of our customers will pass their audits. 

    • p pstclair

      Are you able to use the Update and Report Income Tax Details process to update the distributions systematically without it resetting the approval status?

    • Ratna Elete

      Thank you for this post Judy.

      We have similar exceptions.

      Our issue is part of the invoice amount is not 1099 and business reviews at the end of the year prior to running 1099 and by this time it has already been posted to GL and 1099 needs to be modified and we couldn't find a way to do this without going through reconciliations and adjustments etc, there by not using Oracle 1099 but would like to use it.  

      Business is working to change some of their processes to see if they can identify upfront but it might take time to change the process.

    • Judy Hamner

      Thank you for all the feedback.  I'm glad to hear this isn't only an issue for us.  I have to agree with Jason's comment above.  "...changing the tax type is a very common situation that forcing the invoice to go through workflow approval again is unnecessary since the approvers probably have no knowledge of the correct tax type."

      At least in our situation, our AP and Tax folks know far more the correct tax type than the invoice approvers have.  Returning the invoice to them for approval is extremely confusing, especially since the invoice has already been approved and paid.  

      The alternative of force approving is indeed an option, but it is not ideal because it changes the invoice approval status which could also be an audit issue.  

      It sounds like there isn't a good answer to this question at this time.  I am going to put this in the Ideas section for review by Oracle.  If you have commented on this post, please watch for the idea and give it a thumbs up!

       

    • Rachel Thompson

      In our system, we setup an invoice requestor called "Manual Approver" who is a member of the accounting department and understands why the invoice is being retrouted. When this approver is selected, the invoice routes directly to this one person and then is complete. That's how we got around having to make changes that trigger reapproval. 

      • Judy Hamner

        That's a great idea, Rachel.  Can you provide a bit more information about how you have that set in our workflow?  Does a user have to manually re-route the invoice to this approver after it is re-submitted?  

        Judy

    • Judy Hamner

      I have posted in the Idea Lab.  

    • Becky Alvarez

      FYI..when I forwarded the Idea from the Idea Lab to development, they indicated this was pretty much a bug and that while it will not be fixed for 1099's this year/cycle it will be fixed for next year/cycle.  Until then the workaround is to force approve the invoices.

    • Judy Hamner

      Thank you for the follow-up, Becky.  I am very happy to know that this will be fixed by next year/cycle.  I appreciate your help!

      Judy