Oracle AP: With Holding Tax Calculated wrongly

Question

Dear Pros...
Pls help with regards to the following...
We want Oracle to APPLY  Witholding tax at Payment time and create withholding invoice at payment time
Following is our setup:
In Payable Options window: Witholding Tax Tab
Use Witholding Tax = Check
Allow Manual Witholding = Check
Witholding amount basis:
Include Tax amount = Check
Apply Witholding Tax:
At Payment Time = Check
Create Witholding Invoice :
At Payment Time = Check
Total Invoice Amount to be processed = 100
Our desired result should be the following double entry
@ Invoice entry time
DR  Expense  100
Cr     Liability                100
@ payment time…..we want system to do the following entry
DR   Liability     100
CR     CASH            95
CR WITHOLDING TAX    5
BUT
INSTEAD OF DOING ABOVE DOUBL ENTRY…….
ORACLE IS DOING FOLLOWING DOUBLE ENTRY
@ Invoice entry level (same as desired)
DR  Expense  100
Cr     Liability                100
@ Invoice Payment level (Oracle is deducting extra tax and debiting liability with 105) which we don’t want
Dr  Liability   105
CR   Cash                           100
CR  Witholding Tax                  5
PLS Help....!

Answer 1

Hi,
In your initial post you mention this option in Payables Options:
Total Invoice Amount to be processed = 100
Where do you find this option?
Octavio