When you enter a foreign voucher with VAT tax using the Standard Voucher Entry application, the system triggers error 0960: VAT not allowed with Currency Code. What setting is required to allow this type of transaction to be entered?

In JD Edwards EnterpriseOne Financial Management, error code 0960 ("VAT not allowed with Currency Code") is generated during voucher entry when a transaction involves a foreign currency along with a Value Added Tax (VAT) tax rate/area, but system rules prohibit foreign VAT entries. To resolve this error and allow foreign voucher entries with VAT, the Tax Rules by Company (P0022) application must be configured appropriately. Specifically, the "Allow VAT on Foreign Transactions" setting within the Tax Rules setup for the target company must be enabled. This rule instructs the system's tax calculation logic to process tax calculations on transactions where the transaction currency differs from the company's base currency.

A: Company Names and Numbers setup defines general company properties, whereas foreign currency tax behavior is controlled specifically by Tax Rules by Company. B: Tax Rate/Area setup defines tax percentages and GL offsets, not company-level permissions for foreign currency VAT processing. C: Processing options for Standard Voucher Entry (P0411) control defaults and display formats, not underlying foreign tax processing rules. D: Voucher Master Business Function (B0400047) processing options control business logic defaults but cannot override company-level Tax Rules settings.

1. Oracle JD Edwards EnterpriseOne Applications Tax Reference Guide, Release 9.2, "Setting Up Tax Rules by Company," Chapter 3.

2. Oracle Support Document ID 1482811.1: EnterpriseOne Accounts Payable - Processing Foreign Vouchers with Tax.