Example of Reporting Input Taxes in the Tax Register in Primary and Secondary Ledger Currency

The following scenario illustrates tax reporting in primary and secondary ledger currencies.

The default template generates the Tax Register in the primary ledger currency. To create a report in the secondary or reporting ledger currency, you should modify the template to include secondary ledger or reporting ledger amounts.

Payables Invoice

In this example assume the following setup is in place:

• The primary ledger currency is EUR.

• The secondary ledger currency is USD.

• The corporate currency conversion rate is 1.2.

The following table shows the accounting entries in EUR currency for an Oracle Fusion Payables invoice AP-Inv-Test5. The invoice is posted.

Account	Debit Amount	Credit Amount	Description
Expense	100.00		Net expense amount taxed at 20%
Tax	20.00		Tax at 20%, fully recoverable
Liability		120.00	Interim tax at 20%

The following table shows the accounting entries in EUR currency for the Payables invoice AP-Inv-Test6. The invoice is validated, but not accounted.

Account	Debit Amount	Credit Amount	Description
Expense	200.00		Net expense amount taxed at 20%
Tax	40.00		Tax at 20%, fully recoverable
Liability		240.00	Interim tax at 20%

Tax Registers

For the primary ledger currency, EUR, the Tax Register shows:

Transaction Number	Transaction Class	Taxable Amount	Tax Amount
AP-Inv-Test5	Invoice	100.00	20.00
AP-Inv-Test6	Invoice	200.00	40.00

For the secondary ledger currency, USD, the Tax Register shows:

Transaction Number	Transaction Class	Taxable Amount	Tax Amount
AP-Inv-Test5	Invoice	120.00	24.00

When you run the Tax Register for the secondary ledger, invoice AP-Inv-Test6 is not reported since it is not posted and does not appear in the subledger accounting tables. These tables are the source for the Tax Register Report.