FAQ: Purchase Orders - Tax [ID 224162.1]

Modified:Aug 9, 2010Type:FAQStatus:PUBLISHEDPriority:2

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In this Document  Purpose  Questions and Answers     Is it possible to specify both the recovery rate and a recovery rule for a tax code in the tax code window?      After defining the Tax Default Hierarchy, the Tax Code is defaulting the wrong source.     Why does the Tax Amount   not show up on Purchase Order?     Cannot Update Tax Code on POXPOEPO after upgrade from 11.0 to 11.5?     POXPOEPO - Unable to Change Taxable Flag to Yes on Purchase Order Shipment?     Purchase Order form hangs when 'APPROVE' button is clicked on the PO form?     POXRQERQ Tax Code is not Updated if Destination Location is Changed?     Taxable_flag and Tax_code_id not Defaulting Correctly in PO_LINE_LOCATIONS_ALL as Shown on the PO Shipments in POXPOEPO?     POXPORRA - Uninvoiced Receipts Report Does Not Include Tax?     Encumbrance Detail Report (EDR) ignores TAX?     Difference between Recoverable Tax and Non recoverable tax?          

Applies to:

Oracle Purchasing - Version: 10.7 to 11.5.10 - Release: 10.7 to 11.5Information in this document applies to any platform.Purpose

FAQ for Purchase Orders: Tax - Release 10.7, 11.0, 11.5.X Questions and Answers

Is it possible to specify both the recovery rate and a recovery rule for a tax code in the tax code window?

No, these are context dependent fields. If you provide value for anyone of the field, the other field will become not updateable.

After defining the Tax Default Hierarchy, the Tax Code is defaulting the wrong source.

There are 5 Tax source options found under Purchasing Responsibility:

Setup -> Organization -> Purchasing Options -> Tax Default Alternate Region Ship-to location Item Supplier site Supplier Financial Option

The same thing holds through for Account Payable Responsibility: Setup -> Options -> Payables -> Tax Name Defaults Alternate Region.

Here you will see the same options as you would in PO, with a few additional choices as well.

PO for Matched Invoices Supplier Site Supplier Account Financial Option Invoice Header Template

These hierarchies must agree and must have a value for each source that is enabled. If the hierarchy position for any enabled field is left blank it will be used before any source which is identified. So, If the Financial Option is enabled without assigning a Position, then it will be used as the default source. Also note that "Enforce PO Tax Name" box should be checked in the Accounts Payable Responsibility:

Setup -> Options -> Payables -> Tax Name Defaults Alternate Region if you want to use the hierarchy defined in PO.

Explanation: Until all hierarchy positions are in agreement and assigned they will not work properly.

Why does the Tax Amount not show up on Purchase Order?

Tax amount does not show up on the Oracle Purchasing side. Tax shows up on the Oracle Accounts Payables (AP) side while matching Invoice to Purchase Order.

Cannot Update Tax Code on POXPOEPO after upgrade from 11.0 to 11.5?

Change the effective date for the tax code to valid value.

POXPOEPO - Unable to Change Taxable Flag to Yes on Purchase Order Shipment?

Taxable flag in Purchase Order Shipments is a non-updateable field. It gets checked and unchecked depending on the tax name field of the Purchase Order Shipments. If a tax name is provided in the tax name field, it gets checked and if the tax name field is nulled out, it gets unchecked.

Purchase Order form hangs when 'APPROVE' button is clicked on the PO form?

One of the Possible Cause can be: Check whether the Item for which you are creating a Purchase Order has the "Taxable item" attribute in the Purchasing Alternate Region set to 'yes'. If it is set to yes, then you need to set up the Tax name for that GL Account in the Tax Names form.

POXRQERQ Tax Code is not Updated if Destination Location is Changed?

Fixed in Procurement Family Pack H 11i.PRC_PF.H with file POXRQLNS.pld 115.91.

Taxable_flag and Tax_code_id not Defaulting Correctly in PO_LINE_LOCATIONS_ALL as Shown on the PO Shipments in POXPOEPO?

Ensure that the tax default options in PO match the tax default options in AP as described in Note:121853.1. .   Update files provided by Patch:1766736.

POXPORRA - Uninvoiced Receipts Report Does Not Include Tax?

Update file POXPORRA.rdf to version 115.11 or higher. Apply Patch 1735974 or later.

Encumbrance Detail Report (EDR) ignores TAX?

For release 11.0.3, Tax is not included in encumbrance calculations for POs in Encumbrance Detail Report. This issue has been fixed in Release 11i via Patch 2020415.

Difference between Recoverable Tax and Non recoverable tax?

Recoverable tax indicates that portion of the tax that can be reclaimed. The recoverable tax reclaimed depends on the recovery rate. Whereas, the non-recoverable tax becomes a part of the acquisition cost of the item. Hence, funds checking and budgetary control include the non-recoverable tax as part of the cost to fully recognize the commitment. Similarly, receipt accruals, are also recorded inclusive of non-recoverable tax to ensure that the liabilities are fully recognized.

FAQ - ORACLE PURCHASING [ID 1264331.1]

Modified:Nov 10, 2012Type:FAQStatus:PUBLISHEDPriority:3

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In this Document

PurposeQuestions and AnswersPurchasing Integration With E-Business Tax:How to view the Tax information from the Purchase Order Entry Form?What will happen to the 11i Tax Code after upgrade to release 12?After upgrade to release 12 we cannot find the Defaulting Hierarchy defined under Purchasing Options?Oracle Purchasing:Does Oracle purchasing and Oracle payables allow sharing of supplier and supplier sites across sets of books ?

Where is release method define in auto source rules form ?Why are errors displayed when a receiving transaction manager is run ?Can you print a custom PO report from the approval screen ?What is PS4 ?How to query po without update access ?In order to print the printed purchase order report what is setup required?Why does a cancelled po be available for matching on Invoice Entry form ?How to generate a po that includes tax and freight ?How to view previous purchase information for a specific item ?What does vendor on hold report do ?Where does the ship-to field get populated from in Requisition/ PO form ?Why does auto source rules create requisitions for only one vendor even though ASL is defined for 2 vendors?In the PO distribution, why does destination type allow only inventory type but not expense type ?When you try to approve a po you get an error "documents total exceeds document total limit rule please enter forward

to" how to resolve?When a po is "finally closed" records are deleted from MTL-Supply table.What happens to   Records in MTL-Supply when po is partially received?How can I see the last query performed by a form ?When 'pay on receipt' for 'unordered items' are being processed invoices are not being created ?How can you populate negotiated sources region within supplier item catalog window ?How can you have specific requestor defaulted on requisition form ?What is the COST PLUS FEE price type? How is Purchase Order treating this price type?What is 2-way, 3-way, 4-way matching? How is this set-up?How do you reflect discount from a supplier on a Purchase orders?How do you change the created date on a Purchase Order?What is the sorting order for requisition lines in autocreation of a Purchase Order?What does the error 'APP-50022: Oracle Human Resources could not retrieve a value for User Type profile option' mean?Why are the action options for creating receipts different in Inventory compared Purchasing?How do you purge Cancelled

Requisitions?Where does this information on the quickpick come from and how can this information default in?You are entering a requisition and are unable to find the header or line note fields. Was this replaced in GUI by attachments?How does the approver reject a requisition?What are standard Quotations used for?When do you see the status of a Purchase order as Archived?Where are standard notes in GUI?In Oracle Purchasing, where is the automatic numbering for Purchase Order defined and maintained?There is a field for the organization code. What is this code?Can the original Purchase Order can be viewed in any way without resorting to SQL, for a revised Purchase Order?What happens if a purchase order is created with an item that does not exist on any price list with pricing transaction entity of PO?Why there is no Data Found In Discoverer Workbooks When Views Are Used Instead Of '%_ALL' Tables?PBWC:What is PBWC?

What are the Requisition Management – Profile Options?What are the Purchase Orders – Profile Options ?Are Preferences supported in PBWC?References

Applies to:

Oracle Purchasing - Version 11.5.1 and laterOracle E-Business Tax - Version 12.0.0 and laterInformation in this document applies to any platform.Purpose

The Document includes answers to some of the questions related to the purchasing functionality.

If you still have questions and to discuss this information further with Oracle experts and industry peers, we encourage you to review, join or start a discussion in the My Oracle Support Procurement Community.

Questions and Answers

Purchasing Integration With E-Business Tax:

How to view the Tax information from the Purchase Order Entry Form?

To view the tax information from the Purchase Order Form navigate to: Actions menu > Manage Tax .

What will happen to the 11i Tax Code after upgrade to release 12?

11i Tax Codes will be maintained as Tax Classification Codes.

After upgrade to release 12 we cannot find the Defaulting Hierarchy defined under Purchasing Options?

11i Defaulting Hierarchies from AR/AP/PO/PA system options will be upgraded as ‘Tax Classification Code’ defaulting hierarchy in Application Tax Options in the context of OU and application product (AR/AP/PO/PA). Navigation to Application Tax Options: A- Login to Tax responsibility > Defaults and Controls > Application Tax Options B- Query for the Operating Unit and Application Name.

Oracle Purchasing:

Does Oracle purchasing and Oracle payables allow sharing of supplier and supplier sites across sets of books ?

Answer: Suppliers can be shared across sets of books , but supplier sites are defined at operating unit level.

Where is release method define in auto source rules form ?

Answer: Release method is defined in Auto Source Rules Form . It is defined innsource document zone. In source document release method field has value in LOV for the user to choose . Values are .a. Values are automatic release/review b. Release using auto create.

Why are errors displayed when a receiving transaction manager is run ?

errors are given below.. "APP -14720 conncurent program RVCTP returned error. Cause : RVCTP encountered n=internal error parameters: RVCTP , immediate, 56224." Answer: To avoid the errors follow the steps given below.. - Inventory , po, and GL periods must be open. - Open periods in open and close periods are in setup of purchasing module. - In inventory module open periods in inventory accounting periods. Now run the trAnsweraction manager the problem will not be replicated.

Can you print a custom PO report from the approval screen ?

Answer: This is not the functionality in 10.7sc. The standard printed PO report is associated to the approval form and can be printed.

What is PS4 ?

Answer: Ps4 is the purchase order Minipak 16M CD. Ps4 is patchset 4.

How to query po without update access ?

Answer: Create a responsibility with access to view purchasing menu only do not associate an update function in it.

In order to print the printed purchase order report what is setup required?

Answer: Use System Administration responsibility and go to system profiles. In system profile field enter %Concurrent% and click find button for finding 'Concurrent: report copies' profile and set the profile field to 1.

Why does a cancelled po be available for matching on Invoice Entry form ?

Answer: This is standard functionality of Oracle Applications. Invoices which are matched to closed or cancelled po's will be placed on a 'quantity order hold'by Auto approval. This hold will prevent payment of the invoice, until the payables module(user) can determine why the invoice has been matched to a closed or cancel po, and then resolve the problem.

How to generate a po that includes tax and freight ?

Answer: This is not handled under purchasing , po only sets a taxable flag for the item to identify it as a taxable item which is calculated correctly upon being invoiced. - Accounting payables handles this. - Tax codes and freight costs are setup in AP. - Tax code varies by state and freight costs may vary due to different packing methods , etc. And these costs are sumed when invoiced.

How to view previous purchase information for a specific item ?

Answer: Use the supplier item catalog prior purchases region which can provide the following information. Supplier name Date of purchase Price paid Unit of measure To Default the prior purchases region which can provide the following information. Navigation :/Profile ->System Query in the profile field = PO :%

Choose PO: Default supplier item catalog window to view previous purchase information for a specific item.

What does vendor on hold report do ?

Answer:

Vendor on hold report prints all vendors who are on hold and have unapproved po's with authorization status = incomplete for that vendor. This helps the user to change the status on the po and approve it. This is the intended functionality of the report. The vendors report would print all vendors and would also include the on hold information.

Where does the ship-to field get populated from in Requisition/ PO form ?

Answer: The ship-to field values are defaulting from the buyer setup in Requisition/ PO form.

Why does auto source rules create requisitions for only one vendor even though ASL is defined for 2 vendors?

Answer: The split percentage used for the vendors in requisitions is only for reporting purposes.This is used in supplier volume analysis report. This report has been replaced by vendors volume analysis report.

In the PO distribution, why does destination type allow only inventory type but not expense type ?

Answer: If the item has 'asset' enabled  in the item master window the item cannot have a destination type as expense on the PO distribution . This is Oracle Applications Functionality.

When you try to approve a po you get an error "documents total exceeds document total limit rule please enter forward to" how to resolve?

Answer: For a document to be approved by a user / originator follow the steps given below.. 1.Ensure approval group setup is appropriate. 2.In order to approve a document the user/buyer/originiator of the document must choose 'document

total' for the object field I the approval groups window. 3.For a document to be approved by the originator it is necessary to verify the amount entered is within the limit of the 'document total'. 4.This is defined in the approval group window. 5.Ensure relevant documents are appropriately defined in document type window. For a document to be forwarded by a user/originator follow the steps given below.. 1.Ensure that higher position is assigned to an employee in the position Heirarchy window.Position of the employee must be higher than the position of the user/originator of the document with greater limit of the 'document total'. 2.Use the reports form in the menu and submit a request for 'fill employee heirarchy ' report. Now the purchase order can be approved if the po is within the user limit and can be forwarded if it is beyond the user limit.

When a po is "finally closed" records are deleted from MTL-Supply table.What happens to Records in MTL-Supply when po is partially received?

Answer: When the po is partially received records are present in the MTL-Supply table. Records in MTL-supply are only deleted when the po is completely received and "finally closed".

How can I see the last query performed by a form ?

Answer: If you want to see the last query performed by a form you can do this through the examine tool as follows: Navigate to help-->tools-->examine Block = system Field = last query The value returned is the last select statement performed by the form.

When 'pay on receipt' for 'unordered items' are being processed invoices are not being created ?

Answer: This problem is solved by applying patch 908129.

How can you populate negotiated sources region within supplier item catalog window ?

Answer: In order for the user to be able to populate the negotiated sources region of the supplier item catalog form, one of the following documents types will need to be created for the item in question : Blanket purchase order Catalog quotation

Planned purchase order

How can you have specific requestor defaulted on requisition form ?

Answer: In order to have a specific requestor default onto the requisitions form , a user will have to set the following in the user will have to set the following in the user's requisition preferences. Navigation: /Purchasing ->Requisitions -> Requisitions Go to special ->preferences Click in the requestor field Choose a requestor from the list of values Click the 'apply' button , a message ' new preferences now in effect.' Close the requisitions form Re-open the requisitions form Click in the lines region , the requestor from requisition preferences should appear in the requestor field.The requisition preferences are only valid while working on it , user needs to re enter requisition preferences each time he starts the applications

What is the COST PLUS FEE price type? How is Purchase Order treating this price type?

In the Price type quickpick in the Purchase Order Lines zone in enter Purchase Order form, there is a value called COST PLUS FEE. What is the COST PLUS FEE price type? How is Purchase Order treating this price type? AnswerThe functionality for COST PLUS FEE price type is not in Oracle Purchasing at this point of time. PO does not do anything with this price type. It is an enhancement request that is being looked at for future releases.

What is 2-way, 3-way, 4-way matching? How is this set-up?

Answer 2-way matching verifies that Purchase order and invoice information match within your tolerances as follows: Quantity billed <= Quantity Ordered Invoice price <= Purchase order price (<= sign is used because of tolerances) 3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined: Quantity billed <= Quantity received 4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined: Quantity billed <= Quantity accepted. (Acceptance is done at the time of Inspecting goods). Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character) Receipt required Inspection

required Matching YesYes4-way YesNo 3-way No No 2-way In GUI, Shipments block, alternative region, click on More...this brings up a region with 'Invoice matching' column where you can choose 2-way, 3-way or 4-way match. You can find more detailed information about matching in the Oracle Payables Reference Manual (Volume 3) Topical Essay on Integrating your Payables and Purchasing Information.

How do you reflect discount from a supplier on a Purchase orders?

Answer The legal document is the Purchase order not the quote and therefore the purchase order should reflect agreed upon price. Secondly if the discount comes after the PO then AP should handle it when invoicing. If you are using a blanket Purchase order then you can use price breaks.

How do you change the created date on a Purchase Order?

Answer The 'Created' date on the Purchase order is not an updateable field, due to it being a legal document once approved.

What is the sorting order for requisition lines in autocreation of a Purchase Order?

Answer Requisition lines first meet search criteria determined by "find" screen, and then are grouped together by item and item category, then by need-by date. After you choose an action, enter any search criteria to narrow the selection of requisition lines. Oracle Purchasing chooses requisition lines from the requisition pool that meet your search criteria. All requisition lines for the same item and item category are grouped together, but they are not necessarily in order alphabetically. Within each grouping of item and item category, requisition lines are ordered by need-by date.

What does the error 'APP-50022: Oracle Human Resources could not retrieve a value for User Type profile option' mean?

Answer The profile HR: User Type needs to be set. Set the profile option 'HR: User Type' at the Responsibility level.

Why are the action options for creating receipts different in Inventory compared Purchasing?

In the Enter Receipts (RCVRCERC) form and using different responsibilities produces different values in the action required field.The Purchasing Responsibility shows Direct and Standard while the Inventory Responsibility shows just Direct. Why are the action options for creating receipts different in Inventory compared Purchasing? Answer Set the Profile option RCV: Allow routing override to 'YES' at the application level.

How do you purge Cancelled Requisitions?

Answer To purge any Purchase orders or Requisitions: - assign the Payables Purge GUI responsibility to the user - have the user choose that responsibility - then choose Purge from the menu - under the Category field do a List of Values and pick Simple Requisitions for cancelled requisitions The choices are listed.

Where does this information on the quickpick come from and how can this information default in?

On the requisition form in the source details zone, there is a field labeled supplier item. Where does this information on the quickpick come from and how can this information default in? Answer The supplier item field on the requisition can be populated by using either the supplier item catalog or ASL. Take an item from the supplier item catalog that has an associated supplier item, add it to the order pad and then add it to the requisition. After doing this go to the source details zone. The supplier item is defaulted in for that item you choose from the catalog. Navigation: --> Purchasing --> Supplier Item catalog

You are entering a requisition and are unable to find the header or line note fields. Was this replaced in GUI by attachments?

Answer The attachments have replaced notes. The attachments are better because at the header level, the requisition notes were not coming over to the Purchase Order whereas the attachment does come over to the Purchase Order.

How does the approver reject a requisition?

When you select the Notifications form to review approvals and click on approve button for a Requisition waiting for approval, the 'Reject' box is greyed out. How does the approver reject a requisition?

Answer You cannot reject Requisitions submitted to yourself. You can only reject those from others.

What are standard Quotations used for?

Answer Standard quote is one that you can tie back to a PO.

For all three types of Quotations and RFQs (Bid, Standard and Catalog), you can define affectivity dates at the header level. For Standard quotations and Catalog, you can specify affectivity dates for individual price breaks.  You can also define your own RFQ or quotation types using the Document Types window A Standard quotation or RFQ includes price breaks at different quantity levels.

When do you see the status of a Purchase order as Archived?

Answer You must approve or print a specific purchase order before you can see it in the history information.

Where are standard notes in GUI?

Answer Go to Setup --> Attachments -->Create attachment. Go to Purchase Order and attach the attachment to the Purchase Order. In GUI, notes are replaced by attachments.

In Oracle Purchasing, where is the automatic numbering for Purchase Order defined and maintained?

Answer The navigation path for GUI is: Setup --> Organizations --> Purchasing Options, Numbering alternate region The navigation path for Character is: \ Navigate Setup Purchasing Options Purchasing, Numbering options

There is a field for the organization code. What is this code?

Answer This code is a short abbreviation for the organization.

Can the original Purchase Order can be viewed in any way

without resorting to SQL, for a revised Purchase Order?

Answer The original version of a revised PO cannot be viewed from the PO form or PO summary form. Information on the original PO can be obtained from the PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables using the PO_HEADER_ID column as a common reference using SQL only.

 

What happens if a purchase order is created with an item that does not exist on any price list with pricing transaction entity of PO?

In 11.5.10, Purchasing and Advanced Pricing can be integrated. (To setup this integration, please refer to MetaLink Document 455778.1 Questions about using Advanced Pricing in Purchase Orders and Requisitions.) Price lists can now be created with pricing transaction entity of PO. What happens if a purchase order is created with an item which does not exist on any price list with pricing transaction entity of PO? Will the system return the error, <item> and <UOM> not found on any price list? Answer No, the system will not return the error, <item> and <UOM> not found on any price list. Functionality is if the item on the purchase order is not found on any price list with pricing transaction entity of PO, then the List Price - found on the Master Items form, Purchasing tab - will be returned to the PO. Thus, the default for Price on purchase orders in 11.5.10 with the integration of Purchasing and Advanced Pricing will be List Price if the item is not found on any price lists with pricing transaction entity of PO. This is documented in bug 5084798 PURCHASING & ADVANCED PRICING: ITEM AND UOM NOT ON PRICE LIST VS LIST PRICE.

Why there is no Data Found In Discoverer Workbooks When Views Are Used Instead Of '%_ALL' Tables?

When views are used like PO_HEADERS instead of PO_HEADERS_ALL, data is not getting populated in the workbook. That means MOAC is not working. The global temporary table mo_glob_org_access_tmp contains no data even when logged in Discoverer Plus 1. Create a folder from a view where oracle synonyms are used like 'PO_HEADERS' 2. Login Discoverer Plus

with some Application User. 3. Create an workbook with the same folder. 4. When executed, the workbook displays the message that no data to be displayed. Answer: Possible Cause: Data is not passed to Discoverer or SQL*Plus due to E-Business Suite r12 Multi-Organization Control Access (MOAC) not being set in the session. Since you are not logging into the application then you would have to set the Multi-Org context like customer have to do when running a custom API. In R12 you have to also set the Multi-Org context. begin fnd_global.apps_initialize(&user_id,&responsibility_id,&responsibility_application_id); mo_global.init('&product_short_name'); end;

PBWC:

What is PBWC?

Oracle Purchasing Release12.0 speeds up daily purchasing tasks with and enhanced Professional Buyer's Work Center (PBWC). Based on web-based user interface models, the WorkCenter is a central 'launch pad' from which buyers can efficiently perform their daily tasks: - View and act upon requisition demand - Create and manage orders, contracts and agreements - Run negotiation events including Auctions RFxs (requires Oracle Sourcing) - Manage supplier information

What are the Requisition Management – Profile Options?

PO: Document Builder Default Document Type: The document type that is defaulted into the document builder region.

Profile Value Description

Add to PO Add to an existing Purchase Order

New RFQ Create a new Sourcing RFQ

New Auction Create a new Sourcing Auction

New PO Create a new Purchase Order

PO: Default Requisition Grouping : The default for grouping requisition lines onto a Sourcing RFQ/Auction or PO.

Profile Value Description

Default Group requisition lines using the default grouping. One or more requisition lines can be associated with one purchase order line.

Requisition Group requisition lines using requisition grouping. One requisition line can be associated with one purchase order line

 

What are the Purchase Orders – Profile Options ?

PO: Auto Apply Default Contract Template : Default Contract template in the PO. What are the documents not supported in PBWC? Following document types are not supported in PBWC : Planned PO Local Blanket Agreement Local Contract Agreement Scheduled Releases BPA Releases Quotations RFQs

Purchase Order Line With Unit Price Includes Non-Recoverable Tax [ID 434904.1]

Modified:Jul 5, 2012Type:HOWTOStatus:PUBLISHEDPriority:3

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In this Document

GoalFix

Applies to:

Oracle Purchasing - Version 11.5.10.2 to 12.1.3 [Release 11.5 to 12.1]

Information in this document applies to any platform.FORM:POXPOEPO.FMB - Enter Purchase Orders GUI

Goal

Is it possible to enter a PO line with a unit price including tax?

Fix

There is no functionality to include tax in the unit price on purchasing documents. The line price specified excludes any taxes and any taxes are applied over and above the line price.

Tax amounts are calculated as additional to the unit price based on the tax code specified on PO shipments.

 

Currently there is an Enhancement request for this issue: Bug 8514270 CREATING INCLUSIVE TAX RATES FOR PURCHASE ORD