Interfacing RMA/ Credit Memo while Applying to Invoice With VAT Tax Inclusive Tax Code Error - You can not apply more than the original line amount (Doc ID 1479785.1)

Last updated on JULY 24, 2017

Applies to:

Oracle Receivables - Version 11.5.10.2 to 12.1.3 [Release 11.5.10 to 12.1]
Information in this document applies to any platform.

Symptoms

A Return Merchandise Authorization (RMA) was created in Order Management (OM) and need to be interfaced into Receivables (AR) as a normal financial process.
After Return Merchandise Authorization (RMA) is processed by autoinvoice process, this autoinvoice process ends with error:

- A credit memo is attempting to overapply a specific transaction line, but overapplication is not allowed.
- The total amount of your credit memo cannot exceed the balance of the debit item it is crediting
- You can not apply more than the original line amount

The Tax code used is Inclusive Tax Code.

It seems as though the entire Credit Memo amount (Say x = line amount + tax, which is inclusive tax) is getting applied to the Invoice Line Amount ignoring the tax line causing the error.

As a workaround, when AMOUNT_INCLUDES_TAX_FLAG is checked (AMOUNT_INCLUDES_TAX_FLAG = Y), the interface completes with no error.  This should not be required as long as the Inclusive Tax is checked.

Steps to Reproduce:
Responsibility:  Order Management
Navigation:  Orders, Returns > Orders
1. Create a Return Merchandise Authorization (RMA)
2. Interface/Move the Return Merchandise Authorization (RMA) create to Receivables
Responsibility:  Receivables
Navigation:  Interfaces > Autoinvoice
Run Autoinvoice Master program
Go To:  Menu > View > Requests
Find the autoinvoice process executed
Review the log file generated and observed the process ends with the error mentioned before

Cause

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