Prorating Purpose

Prorating determines whether freight and packaging lines, and tax lines are automatically applied prior to accounting an invoice, or prorated based on supplied account codes and applied after accounting an invoice.

Enabling Prorating for freight

Determining freight cost behaviour and enabling prorating is controlled by the configuration parameter When should cost lines be generated. The parameter options are BEFORE and After.

• BEFORE: If any of the tags <DeliveryCostPackaging> or <DeliveryCost> is entered on the scanned invoice, lines are automatically created before the accounting is done. Lines types are set to freight or misc.
• AFTER: Cost lines are inserted after accounting is done during Accounts Payable interface. The cost amount is subtracted from the invoice amount when calculating the amount to code. The cost lines amount is prorated according to the account codes supplied during accounting. Distribution sets are considered when prorating freight. Inserted lines have line type ITEM.

Enabling prorating for Tax

Prorating for tax determines which tax method to use and when tax is calculated. The behaviour is determined by the configuration parameter Enable Tax Engine. The parameter options are Yes and No.

Enable Tax Engine set to No

When operating with Oracle E-Business Suite 11i the tax engine is run after accounting is done to ensure that supplied tax information conforms with the supplier setup. For instance, if a supplier has tax calculation set to none or header, tax lines are inserted according to the tax code entered on the item lines in the accounting task details form.

Enable Tax Engine set to Yes

The tax engine assumes that no tax setup has been performed in Oracle E-Business Suite 11i. The tax engine prorates the scanned tax amounts on the entered item lines according to the supplied account codes. Distribution sets are considered when prorating freight. Inserted tax lines have line type ITEM.

If the configuration parameter Enable Tax Engine is set to Yes and the operating Oracle E-Business Suite is version is 11i, the tax code is not visible in the task details accounting form, and tax amount is subtracted from the invoice amount when calculating the amount eligble for coding.