Real Time Discounting Pipeline Is Not Applying Tax On Discounts (Doc ID 2406108.1)

Last updated on SEPTEMBER 19, 2023

Applies to:

Goal

On : 7.5.0.17.0 version, Pipeline Manager

Discounting Pipeline is not applying tax on discounts although tax-code in the balance impact screen of the discount rule is configured.

Scenario:

1. Create a product and deal for a service, with 10000$ MCF (monthly cycle forward) event having Event-Time Tax Code 'IS' defined for it (Tax is 25%)
2. Create a discount and deal defined for above service type, which gives 20% Discount on MCF event
3. Configure the same Tax Code 'IS' in the balance impact screen of the discount rule

Actual Behavior:

Rating applies a MCF charge of 10000$.
Discounting applies the discount on MCF (20% discount on 10000$ = -2000$)
Taxation applies tax on resulting amount i.e. 8000$, which is 2000 (25% tax for IS)
So following events are created:

e.g.,

"U2D(E.CREATED_T)"   "POID_TYPE"   "ITEM_OBJ_ID0"   "AMOUNT"   "QUANTITY"   "RATE_TAG"   "PERCENT"
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
28-Dec-17 "/event/billing/product/fee/cycle/cycle_forward_monthly" 941441 10000 1 "Rate - Lease" 1
28-Dec-17 "/event/billing/product/fee/cycle/cycle_forward_monthly" 941441 -2000 10000 "Rate - Lease" 1
28-DEC-17 "/event/billing/product/fee/cycle/cycle_forward_monthly" 941441 2000 8000 "Tax" 0.25

Expected Behavior:

Two separate events for tax; one for tax on product  (i.e. 2500) and another for tax on discount (-500). This is needed to report them separately in GL reports.

Solution

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