How Can Tax be Recalculated in a Service Contract?
Last updated on MARCH 08, 2017
Applies to:Oracle Service Contracts - Version 12.0 and later
Information in this document applies to any platform.
***Checked for relevance on 20-Sep-2016***
How can Tax be updated in a Service Contract to reflect changes to Tax Rates in Receivables?
An example of when this may be needed is when reports have been created to present renewal information to customers. Contracts would be renewed a number of days prior to expiration. During the time between the renewal contract being created and the start date the Tax Rate may be updated in Receivables. However, when the renewal contract is opened the Tax on this contract does not reflect the new Tax Rate and reports created to present the customer would contain the same inaccurate Tax information as the data is being pulled from the Service Contract.
Note: The correct Tax will be billed to the contract customer regardless of the Amount displayed in the Service Contract. The Tax amount provided in the contract is only an estimate. The actual Tax to be invoiced to the customer is calculated in Receivables when the Invoice is created.
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