Support of Tax Rule 'Apply X Percentage Tax on Amount up to Y from the Entire Taxable Amount Z', Where Y Is the Capped Amount and Is Always Less Than Z (Doc ID 1470112.1)

Last updated on FEBRUARY 01, 2016

Applies to:

Oracle Retail Point-of-Service - Version 13.3 to 13.4 [Release 13.3 to 13.4]
Information in this document applies to any platform.
***Checked for relevance on 02-JUN-2014***

Symptoms

The following type of Tax Rule is not available in Oracle Retail Point Of Service (ORPOS), and is required for retailers in Florida.

"Apply X percentage tax on an amount up to Y from the entire taxable amount of Z”, where Y is the capped amount and is always less than Z"

To support tax calculations for Florida sales, a new type of tax rule needs to be coded.  In the example below, Oracle’s current tax rule types do not support the type of calculation described above.

Pre-requisites: An item price of $5100 is assumed. The whole amount is taxable; thus, the entire taxable amount is $5100. However, parts of this amount are to be taxed at different tax rates.

1. For $0 – $5000, calculate 6.5% on entire amount.  $5000 is called the capped amount out of the entire amount taxable of $5100.
2. For $5000.01 and up (to infinity), calculate 6% tax.  In this case, since the item price is $5100, calculate 6% on the difference between 5100 and 5000, which is (5100-5000)=$100.

The type of calculation needed to cover step 1 is: 'Apply X percentage tax on an amount from 0 to Y' (where Y is the capped amount of $5000 in the Florida example).
The capped amount is always less than the entire taxable amount (which is the item price of $5100 in the Florida example).

The type of calculation needed to cover step 2 is available in base with the usage of threshold tax type rule 3.

Cause

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