Create Accounting Error: APP-AR-11526: arp_process_adjustment.insert_adjustment exception When Adjusting Using a Receivable Activity with Non-Recoverable Tax (Doc ID 1486480.1)

Last updated on JANUARY 03, 2023

Applies to:

Oracle Receivables - Version 12.0.6 and later
Information in this document applies to any platform.

Symptoms

When creating an adjustment using a Receivable activity which was previously created, deleted then re-created, the system fails to generate a code combination Id for ADJ_NON_REC_TAX when adjusting with this Receivable Activity.

Steps to Reproduce:

Responsibility: Tax Manager
Navigation: Tax Configuration > Tax Rates
Create following Tax Rate:

Tax Regime Code      : TEST_REGIME
Configuration Owner: Global Configuration Owner
Tax                           : TEST_GST
Tax Status Code       : TEST_TAX_STATUS
Tax Jurisdiction Code:
Tax Rate Code          : TEST7
Percentage Rate       : 7
Effective From           : 01-Jan-1951
Effective To               :

With the following Tax Accounts:
[General Tax Accounts]
Tax Expense                   :
Tax Recoverable/Liability: xxxxxxx.xxx.xxx.xxxxxxx.xxxxx

[Non-Recoverable Tax Accounts]
Adjustment                    :
Save it
Search for Tax Rate Code : TEST7
Click Update icon.
Click Remove icon and then press Yes button to remove this Tax Rate.
Then Re-enter as follows:
Navigation: Tax Configuration > Tax Rates

Create following Tax Rate:

Tax Regime Code         : TEST_REGIME
Configuration Owner    : Global Configuration Owner
Tax                   : TEST_GST
Tax Status Code          : TEST_TAX_STATUS
Tax Jurisdiction Code   : TEST_JUR
Tax Rate Code             : TEST7
Percentage Rate    : 7
Effective From              : 01-Jan-1951
Effective To      :

With the following Tax Accounts:
[General Tax Accounts]
Tax Expense                 : yyyyyyy.yyy.yyy.yyyyyyy.yyyyy
Tax Recoverable/Liability : xxxxxxx.xxx.xxx.xxxxxxx.xxxxx

[Non-Recoverable Tax Accounts]
   Adjustment               : yyyyyyy.yyy.yyy.yyyyyyy.yyyyy
Responsibility: Receivables Manager
Navigation: Setup > Transactions > Receipts > Receivable Activities
Create following Receivable Activity:
Name : Adjustment_test_1
Type : Adjustment
Active : checked
GL Account Source : Activity GL Account
Tax Rate Code Source : Activity
Recoverable : Off
Non-Recoverable : On
Activity GL Account : zzzzzzz.zzz.zzz.zzzzzzz.zzzzz
Distribution Set :
In the Tax Section:

Legal Entity    Tax Rate Code
90600_Test   TEST7
Navigation: Transactions > Transactions
Create an Invoice
CASE 1: If you set profile option "AR:Disable Receivable Activity Balancing Segment Substitution" to Yes :

Adjust a created transaction with Receivable Activities : Adjustment_test_1. Following records are generated:

[AR_DISTRIBUTIONS_ALL]
LINE_ID SOURCE_TABLE SOURCE_TYPE         CODE_COMBINATION_ID
------- ------------ ------------------ -------------------
    30000 ADJ           ADJ                 33016
    30001 ADJ           ADJ_NON_REC_TAX     -1      <--- not getting correct code_combination_id value
    30002 ADJ           REC                 52998

Execute Submit Accounting with parameter "Report" : Detail. Ended with warning and there is following error in output file:

Error Number   Error Message
95353    Subledger Accounting was unable to derive an accounting code combination using the account derivation rule Distribution GL Account owned by Oracle.
           Please review the account derivation rule and make sure it derives a valid accounting flexfield combination for the source values passed for the transaction

CASE 2: If you set profile option "AR:Disable Receivable Activity Balancing Segment Substitution" to No:

Adjust a created transaction with Receivable Activities : Adjustment_test_1. Following error message is displayed:

APP-AR-11526: arp_process_adjustment.insert_adjustment exception: ORA-20001:
APP-AR-96024: Account Generator is unable to derive information for one or
more of the following accounts: COA: 50556; Orig CCID: -1; Sub CCID: 216057.
Please contact your system administrator.