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.
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The secondary ledger currency is USD.
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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.