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

Last updated on JULY 11, 2024

Applies to:

Symptoms

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

STEPS
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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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