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PRC:PO: Direct Tax Rate Rules Is Not Working for Product Type Equal to Goods (Doc ID 2702719.1)

Last updated on SEPTEMBER 14, 2020

Applies to:

Oracle Fusion Purchasing Cloud Service - Version 11.13.20.04.0 and later
Oracle Fusion Tax Cloud Service - Version 11.13.20.04.0 and later
Oracle Fusion Purchasing - Version 11.13.20.01.0 and later
Oracle Fusion Tax - Version 11.13.19.10.0 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
---------------

The customer is setting up a Direct Tax Rate Rules for a case that Product Type is GOODS in PO line as follows:

Tax Rule Type: Direct Tax Rate Rules
Rule Configuration Owner : Global configuration owner

-Tax Condition Set 1
Tax Determining Factor Class  : Transaction input factor
Tax Determining Factor Name  : Product Type
Operator                               : Equal to
Value or From Range             : GOODS

-Tax Condition Set 2      
Tax Determining Factor Class  : Transaction input factor
Tax Determining Factor Name  : Tax Classification Code
Operator                               : Is blank


However, if user creates PO line as Product Type:GOODS without Tax Classification Code, any Tax is not applicable at all.
So no taxes are calculated at all.

NOTE: When Product Type in PO line is Service, the Tax Classification Code is carried over from REQ and taxes are calculated correctly.



EXPECTED BEHAVIOR
-----------------------
When Product Type is GOODS, Tax Rate defined by above tax rule should be applied and tax should be calculated correctly.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:

  1. Setting up Direct Tax Rate Rules
  2. Create PO line with Product Type:GOODS and without Tax Classification Code
  3. No taxes are calculated at all

Cause

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In this Document
Symptoms
Cause
Solution
References


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