Examples of Impact on Summary and Detail Tax Lines for Tax Detail Changes

Any changes you make to the tax details at the line level apply to the summary tax line details. Similarly, any changes you make to the tax details at the summary tax level apply to the line level taxes.

The tax amounts are revised according to the taxes calculated on each item line, except in the following scenarios:

• When a manual summary tax line amount is specifically allocated to the item lines with the amounts different from the default allocation.

• When a manual summary tax line is marked as a tax only line. In this case, the summary tax line is considered as an ad hoc tax line not related to the transaction, and isn't allocated to the item lines.

Note: The Summary Tax Lines component is applicable only to Oracle Fusion Payables.

Assume that you create an invoice with two item lines with taxes applied on them and reflected in the detail and summary tax lines as follows:

Tax Details	Amount
Invoice Line-1	100
Invoice Line-2	200
Summary tax	300

The following scenarios illustrate the alignment between the detail and summary tax lines when changes occur at either level. All example amounts are in USD currency.

Aligning Detail and Summary Tax Lines

The following scenarios illustrate the alignment between the detail and summary tax lines when changes occur at either level. All example amounts are in USD currency.

Example 1

The first example illustrates the impact on the summary tax line when you change Line-2 tax from 200 to 300:

Tax Details	Amount
Invoice Line-1	100
Invoice Line-2	300
Summary tax	400

The application revises the summary tax line from 300 to 400.

Example 2

The second example illustrates the impact on the detail tax lines when you change the summary tax line from 300 to 600:

Tax Details	Amount
Invoice Line-1	200
Invoice Line-2	400
Summary tax	600

The application adjusts the detail tax lines according to their calculated taxes. For example, Line-2 tax amount is the summary tax amount of 600 USD multiplied by 100/300 (600 * 33.333% = 200).

Example 3

The third example illustrates the impact on the detail tax lines when you create a manual summary tax line and it's specifically allocated to the item lines as 150 and 400:

Tax Details	Amount
Invoice Line-1	150
Invoice Line-2	400
Summary tax	550

The detail tax lines determine the allocation amounts.

Example 4

The next example illustrates the impact on the detail tax lines when you specify a manual summary tax line as a tax only line:

Tax Details	Amount
Invoice Line-1
Invoice Line-2
Summary tax	100

The application creates a manual detail tax line with a negative transaction line number and the summary tax line amount and is displayed in the detail tax lines region. The reason for the negative transaction line number is that the detail tax line generated isn't associated with an existing transaction line.

Example 5

The next example illustrates the impact on the detail tax lines when one of the taxes is specified as inclusive:

Tax Details	Amount
Invoice Line-1	91.91
Invoice Line-2	200
Summary tax The Inclusive option is selected The Inclusive option is not selected	91.91 200

The application generates two summary tax lines to reflect the status of each of the detail tax lines.

Note: Taxes calculated on a transaction are displayed as invoice lines with the type of Tax. They match the details provided in the Edit Tax Line Details page. However, when taxes are specified as self-assessed, the application doesn't generate the corresponding tax invoice lines. The details are available only in the Edit Tax Line Details page.