Hi Hasan:
My tax will generate both recoverable (n1%) and non-recoverable (n2%) components.
So when I am validating invoice created against PO, I am getting 2 tax distribution lines:

1. Recoverable Tax with Account defaulted from, what I entered in "Tax Recoverable/Liability" while setting up ebs tax. (say 2100)
2. Nonrecoverable Tax with Account same as Inventory Material Value (say 1410), which is also my PO distribution account, which I entered while creating the PO Line.

I have confusion after reading metalink, user-guides which precisely states: "The GL account assigned to these distributions (non-recoverable) will be from the Item distribution(s)".

Why not Oracle dumps it in Tax Expense Account (say 5200). You stated in tutorial, that if tax recovery is not allowed in your jurisdiction, then you have to specify Tax Expense A/c. In my case, both are calculated and I defined Tax Exp A/c also, hoping Oracle will dump the PO expense to this account, but instead non-recoverable tax is showing PO Distribution A/C which is 1410 and not in 5200 (Tax Expense A/C). Is this correct behavior of Oracle or I am making some mistake ?
Thanks very much.