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Double Taxation Applied on Income From Vendor Funded Promotion Deal (Doc ID 2883737.1)

Last updated on JULY 18, 2022

Applies to:

Oracle Retail Merchandising System - Version 16.0.3 and later
Information in this document applies to any platform.

Symptoms

Tax is applied on income generated by Vendor Funded Promotion (VFP) deals which is leading to double taxation in the billings.
Since, the income calculated on the deal is already inclusive of tax, tax should not be applied again.

Example:
Regular Price $10. This includes VAT taxes.
Promotional Price $7. This also includes VAT Taxes.
Promotional Discount $3. This also includes VAT Taxes.
Vendor Contribution (the % of the discounts to bill the vendor) 60%
Units Sold under promotion 1000.
Income for the deals = 60% * $3 * 1000 Units = $1,800 This also includes VAT taxes.

Since, all the above amounts tax inclusive tax should not be applied again on the generated income.

Steps to Recreate:

  1. Create a Vendor Funded Promotion (VFP) deal.
  2. Create a Vendor Funded Promotion with some contribution from vendor.
  3. Ensure deal is active.
  4. Perform sales.
  5. Run all deal batches including vendinvc.
  6. Notice that staging table for complex deal is populated with income and also tax is applied on the income. Tax should not be applied in this case.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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