Proration of Freight and Miscellaneous Lines for IDR Invoices
Currently, for invoices imported using Intelligent Document Recognition (IDR), freight and miscellaneous amounts are recognized and prorated across item lines. In certain countries, the tax treatment varies between the item liability account and the freight account. In these cases, manual intervention is required to back out the prorated amounts in the item lines and assign those amounts to their dedicated accounts.
This feature reduces that manual effort by providing the option to assign freight charges to a specific account. Set the “Prorate freight and miscellaneous lines” option on the Manage Intelligent Document Recognition Options page to determine whether freight and miscellaneous lines on invoices are prorated across item lines or assigned to a specific freight account.
The use of this option can help address the requirements of certain tax authorities related to freight charges on capital goods.
The option in Manager Intelligent Document Recognition Options setting page
Behaviour of this option:
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When enabled, freight and miscellaneous lines on invoices imported through IDR are prorated across item lines. The "Prorate Across All Item Lines" option on the Edit Invoice page is enabled and non-editable.
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When disabled, freight and miscellaneous lines are assigned to a specific freight and miscellaneous distribution account defined for the applicable business unit. The "Prorate Across All Item Lines" option on the Edit Invoice page is not enabled but editable.
"Prorate Across All Item Lines" checkbox in edit invoice page is editable when this option is disabled.
Business Benefits:
- Reduces manual updates to freight and miscellaneous lines.
- Ensures correct defaulting of account code combination to freight and miscellaneous lines.
Steps to Enable
You don't need to do anything to enable this feature.
Tips And Considerations
By default, the “Prorate freight and miscellaneous lines” option is enabled on the Manager Intelligent Document Recognition Options page.
Key Resources
- Recognition and Processing Options
- This feature originated from the Idea Labs on Oracle Cloud Customer Connect: Idea 564825.