Changing Asset Location in the Lease Center Results in New Upfront Tax Invoices with no Credit Memo
Last updated on MARCH 08, 2017
Applies to:Oracle Lease and Finance Management - Version 12.1.2 and later
Information in this document applies to any platform.
Checked for relevance on 05-Jul-2015
On : 12.1.2 version, Customer Service
When using the Asset Location Bulk Update form in the Lease Center Tax, the Taxable Amount used to calculate Upfront Tax for the Asset Relocation Transaction is being calculated incorrectly. Rather than using the Formula indicated in the Tax Basis Override setup for the Booking Transaction Type, the Taxable Basis seems to be the sum of the Rent Streams for the updated Asset(s). In addition there is no credit for the original Tax Invoice which means that the customer is being overcharged for Tax.
Expect that (a) the Tax Basis Override Formula would be used to derive the Taxable Basis and (b) a Credit Memo would be generated for the original Tax Invoice.
The issue can be reproduced at will with the following steps:
1. Create a custom formula to calculate the Taxable Amount for Upfront Tax.
2. Use this Formula on the Booking Transaction Type in the Tax Basis Override setup.
3. Book and bill a contract. The Taxable Amount will be derived based on the Formula.
4. Open the contract in the Lease Center and select the Asset tab.
5. Click the Bulk Asset Update button.
6. Select a Location from the LOV (any will do, including the current install location for the asset).
7. Click Apply, then OK for the confirmation.
8. Bill the contract again to process the Asset Relocation Tax invoice.
In this invoice the Taxable Amount is not using the custom formula, it is using the sum of the Rent streams.
As a result the Tax is not correct, and there is no credit created for the original Tax invoice.
The issue has the following business impact:
Due to this issue, users cannot change a location in this form without billing an incorrect amount to the customer.
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