Tax Rounding Issues: 11i Round Up/down, R12 Round Up (Doc ID 1565196.1)

Last updated on SEPTEMBER 12, 2016

Applies to:

Oracle Order Management - Version 12.1.3 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.
OEXOEORD.fmb - Sales Order form

*** Checked for Relevance 08-Apr-2015***

Symptoms

On : 12.1.3 version, Finance & Accounting

ACTUAL BEHAVIOR
---------------
In 11.5.10 on sales order the tax rounding for multiple lines is one line rounds up and the next
line rounds down. Hence the order total tax amount is same as AR amount. It is correct tax.

In R12.1.3 same order and lines have each line rounding up. Hence the order total tax amount
is greater than tax amount in AR. OM tax amount is incorrect.

This occurs for all currencies, however is very noticeable using  TWD (Taiwan) which uses whole
number (integer) without decimals.



EXPECTED BEHAVIOR
-----------------------
R12.1.3 to have correct total tax amount.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:

1. Customer set-up for the Bill To site
    Navigation = Customers > Customers (will open HTML page)
    Search for Customer #
    At Site Addresses, select site address,  Click on Details
    Select TAX PROFILE button, see Rounding Level = Header


2. Create sales order header, currency = TWD
    Add five (5) identical lines (item, qty, price):  quantity = 1 and unit selling price = 75,330 with 5% bus TAX selected
    See tax per line is (5 * 75,330 = 3766.5) rounded to 3767
    Order Subtotal is ( 5*75,330)  = 376,650 
    See tax on order is  (5*3767)  =   18,835

   Expected Header TAX calculation is 376,650 *5% = 18832.5 , to be rounded to 18,833.

   Note difference:  18,835 versus 18,833.


Changes

Upgrade from 11.5.10 to R12.1.3

Cause

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