Tax Accounting in Projects

Question

We are using event/event distribution method. Our accounting policy which is being consistently followed for last 7 years requires, revenue to be recognised gross of taxes. Hence the tax account should also be my revenue account when the transactions are interfaced into Receivables.
Is there any solution available in Oracle, even with a little of workaround using a custom report to take care of this.
Accounting at the time of EVENT revenue distribution and interface revenue to general ledger -
Unbilled Receivables A/c Dr. 1000
Cr. Event Revenue A/c 1000
Accounting when the invoice is interfaced in AR from the AR transaction window -
AR a/c Dr. 1100
Cr. Unbilled Receivables A/c Dr. 1000
Cr. Sales Tax Payable 100
I want this sales tax payable also to go into Event Revenue A/c. We have multiple Event revenue Accounts based on Customer Categories in AR. We have used SQL codes in Auto Accounting Rules to generate Event Revenue A/c.
Is there any Tax Accounting function, that I can use in Auto-Accounting in Projects to over-come this problem?

Answer 1

You may be aware of the following, if not the good back info for you I think:
The tax calculation on an invoice in projects is driven by how you set up Etax. Use the navigation
Responsibility: Tax Manager
Navigation: Defaults and Controls -> Applicable Tax Options
Application name: Projects
Then create your defaulting order of precedence.
Calculating tax in OP
yes you are correct the actual tax amount is not calculated in OP. The tax codes are applied at line level to the lines sent from OP to AR. So you have two options:
1. Create a modified draft invoice print that shows the tax amount calculated
2. You may want to challenge why project managers are required to sign of amounts including tax. They could not influence the tax amounts (they are legislated) therefore there does not seem much point in them approving thois apsect of the invoice. All they are approving is that the correct tax code has been used, which is shown on the draft invoice. Failing that you could introduce a project status workflow that requires project managers to approve that the correct tax code has been selected on a project before it is allowed to be billed.
Sorry I can give you a specific solution, but hopefully the above will help